P.A.Y.E and the New Tax Year

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Employing people under the age of 21

From 6 April 2015, there will be no Employers National Insurance Contributions (NIC’s) on the wages you pay to employees who are under the age of 21 (up to the Upper Secondary Threshold)

Employment Allowance

The £2000 Employment allowance is available for a second year. The £2000 is available against the total Employers NIC’s for most employers. There are some employers that are ineligible for this allowance.

Small Employer’s Relief

Small Employer’s relief is available to employers whose Total National Insurance liability (Employee and Employer Class 1 NIC’s combined) is less than £45,000 per annum.

The relief entitles Small employers to recover 100% of the Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP) and Statutory Adoption Pay (SAP) payments paid to employees. They are also entitled to an additional 3% in compensation for the Employers NIC’s paid on these statutory payments.


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