Employment Allowance for 2021/22 Tax year
Employment Allowance (EA) allows certain employers to reduce their annual National Insurance (NI) bill by up to £4,000 (for the 2021/22 tax year).
For eligible employers, the Employers NIC liability be will be reduced by up to £4000.00 in the 2021/22 tax year. Should your employers NIC be less than £4000, you will only be able to claim up to the total Employers NIC liability due.
This is ‘claimed’ by reducing the PAYE due to be paid to HMRC, and is not a payment that you can apply for.
Letter from HMRC
HMRC have started sending some employers notices to advise that they may be eligible to claim Employment Allowance for the 2021/22 tax year.
The new notice sent by HMRC can be unclear, as it does not confirm how to make the claim, however rest assured dhpayroll will continue to make the Employment Allowance reclaims through the payroll for all our eligible clients, and no further action is required .