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Small employer's relief

Employers can reclaim a minimum of 92% of certain statutory payments that they pay to employees.

An employer who qualifies for small employer’s relief can reclaim 100% of these payments, plus an additional 3% compensation payment.

Who qualifies?

Qualification depends on the employer’s total Class 1 national insurance contributions paid to HMRC in the previous tax year. Or if you’re a new employer, it depends on what you’re forecast to pay over a year.

Your business normally qualifies for this relief if your NI liability was £45,000 or less in the completed tax year preceding the employee’s qualifying or matching week.

HMRC can confirm your small employers’ relief status.

To claim the relief

You claim the relief when you are preparing a P32/EPS submission.

Simply choose Yes in the ‘Eligible for NI Employment Allowance’ drop-down on the first window of the P32/EPS wizard.

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