Construction Employers See Benefit of NI Allowance

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14/08/2014

Data released by the Department for Business, Innovation and Skills (BIS) has revealed that construction is one of the sectors benefitting most from the recently introduced National Insurance (NI) Employment Allowance.

Construction Employers See Benefit of NI AllowanceFrom April 2014, every business and charity in the UK has been entitled to a £2,000 Employment Allowance to help reduce their employer National Insurance Contributions (NICs) each year. In August, BIS announced that over 725,000 employers across the UK have claimed the allowance and construction is in the top three sectors to benefit with 91,000 employers taking up the scheme.

Employers can claim the allowance through standard payroll software and only have to signify their intention on one occasion by completing the yes/no indicator. HMRC will automatically carry the claim forward each tax year, so employers just need to check that their circumstances have not changed from the previous year. There is a paper process for employers who still submit their returns this way.

The Employment Allowance applies per employer, regardless of how many PAYE schemes they operate, so each employer can only claim for one allowance and it is up to them which PAYE scheme they claim against.

Further information regarding the Employment Allowance can be found in our recent article. BWF members can receive free advice courtesy of the NSCC Tax and Business Helpline provided by Baker Tilly. To contact the helpline, members should phone the main BWF number on 0844 209 2610.

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