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Jill Headford

Posted 2 April 2014
by Jill Headford

Help for equestrian businesses!

New Employment Allowance

From 6 April 2014 eligible employers can reduce their Class 1 National Insurance Contributions by up to £2,000 each tax year. 

Most equestrian businesses can benefit from this new allowance.  It is not available for all employees – you cannot claim it for someone you employ for personal, household or domestic work, such as a nanny, au pair, chauffeur or gardener.  But you can claim for your employed grooms, jockeys, yard staff and retail employees.

The HMRC website gives the following example of how the new Employment Allowance works: if your employer Class 1 NICs are £1,200 each month, in April your Employment Allowance used will be £1,200 and in May £800, as the maximum is capped at £2,000.

Employers should be able to claim the Employment Allowance using their own 2014 to 2015 payroll software or HM Revenue and Customs’ (HMRC’s) Basic PAYE Tools for 2014 to 2015.  Find detailed guidance at https://www.gov.uk/government/publications/employment-allowance-more-detailed-guidance.

 

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About the author

Jill Headford

Jill Headford

Partner

A partner in the firm since 1994 and an experienced Court and Tribunal advocate, Jill specialises in resolving disputes and is a member of the Property Litigation Association