Welcome to the May 2014 Newsletter from Easterbrook Eaton Limited
April was a busy month for many, with long-awaited changes finally coming into effect on the 6th plus a few Budget surprises to take into account. The start of the 2014/15 financial year is a time for business owners to breathe the spring air and look to the future.
You can view our summary of the 2014 Budget, visit the tax information section of our website.
Changes to legislation for employers
A number of significant changes for employers have taken place, meaning that every business with employees must re-evaluate their practices to make sure they are conforming to legislation.
The new Employment Allowance
Last year Chancellor George Osborne announced plans to introduce a new Employment Allowance designed to reduce the national insurance liability for businesses and charities, and to encourage businesses to expand and take on new staff.
Since April 2014 every business, charity and Community Amateur Sports Club in the UK has been entitled to claim up to £2,000 off their employer national insurance contributions (NICs) bill.
Employers must confirm their eligibility through their regular payroll process, to ensure that up to £2,000 is deducted from their employers' Class 1 NIC liability over the course of the year's PAYE payments.
The new Employment Allowance is delivered through standard payroll software and the HM Revenue & Customs (HMRC) Real Time Information (RTI) system.
The Employment Allowance applies per employer and can only be claimed once, irrespective of how many PAYE schemes the employer chooses to operate. It is up to the individual employer to decide which PAYE scheme to claim it against.
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