Spring Budget 2017 – NIC employer allowance

The NIC Employment Allowance was introduced in April 2014 and enables employers to reduce their Employer NIC bill each year. The allowance was increased to £3,000 with effect from April 2016, however HMRC are aware that there are businesses that appear to be misusing the employment allowance.

Despite changes to withdraw one person businesses from qualifying, HMRC are still concerned over reports that some businesses are using avoidance schemes to avoid paying the correct amount of National Insurance Contributions. HMRC are actively monitoring compliance in relation to the allowance and the Government will consider taking further action in the event that this avoidance continues.