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Payroll Software: HMRC to promote NICs Employment Allowance via GNS

NICs Employment Allowance - Generic Notification Service (GNS) Message to Employers in September 2014

HMRC has asked Carval to share the following important nformation with our payroll software users. Towards the end of September, any PAYE scheme that hasn’t so far submitted an Employer Payment Summary in 14/15 will receive an electronic Generic Notification Service (GNS) message from HMRC to encourage them to check eligibility and claim the Employment Allowance.

The content of the message is as follows -

“Businesses and Charities with employees or directors can claim up to £2,000 against their Class 1 employer National Insurance Contributions from 6th April 2014. The Employment Allowance can only be claimed once for each employer and not for each PAYE scheme. You should check your eligibility to claim the Employment Allowance and find out how to claim it by going to www.gov.uk/employment-allowance”

What is the Employment Allowance?

The Employment Allowance, offers businesses and charities a reduction of up to £2,000 in the amount of employer Class 1 National Insurance contributions (NICs) they have to pay every year from the 6 April 2014.

Who is eligible?

Almost every employer who is a business or charity (including a Community Amateur Sports Club) that pays employer Class 1 NICs on their employee’s or director’s earnings are eligible for the Employment Allowance. More information on eligibility is available at http://www.gov.uk/employment-allowance

Why have I been sent this message?

You have been sent this message, because you haven’t yet claimed the Employment Allowance on the PAYE scheme in question and HMRC want to encourage you to check your eligibility and take up the up to £2,000 Employment Allowance if you haven’t yet done so.

Why have I been sent this message, when I have already claimed the Employment Allowance for another PAYE scheme my business/charity runs?

HMRC want to encourage businesses and charities to take up the Employment Allowance and the message has been sent to businesses and charities where they have not done this already (as the PAYE scheme has not submitted an Employment Payment Summary).

However, you are correct that a business/charity can only claim the Employment Allowance against one of the PAYE schemes it operates and not against each of them, so if you have already claimed the Employment Allowance on another PAYE scheme your business/charity runs or another PAYE scheme in the group, you do not need to do anything further.

What do I need to do to claim Employment Allowance?

First check your eligibility and if you are eligible all you need to do is claim it using your 14-15 payroll software. This will depend on your package, but will most likely be a box they have to tick.

Can the Employment Allowance be claimed for each PAYE scheme I run or for each business/charity in a group?

No, the Employment Allowance can only be claimed once for each employer and not for each PAYE scheme. So even if you have received a reminder to claim the Employment Allowance, you must ensure they are only claiming once against one PAYE scheme, or have not already claimed, especially if your business/charity runs multiple schemes. The Employment Allowance can only be claimed once for each employer or each group of connected employers. More information is available in the further guidance on the Employment Allowance https://www.gov.uk/government/publications/employment-allowance-more-detailed-guidance.

If I haven’t claimed my Employment Allowance yet, can I do this now?

Yes, you can claim the Employment Allowance after the start of the tax year as long as your business/ charity has employer Class 1 NICs liabilities and is eligible to claim the Employment Allowance. For example, if you make a claim in October, your Employment Allowance deduction against your year to date Class 1 NICs liability will be your employer Class 1 NICs liability to date (up to the £2,000 annual maximum) as shown on your last Full Payment Submission.

An example of how to make the NICs deduction when claiming the Employment Allowance after the start of the tax year is given at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/298927/claiming.pdf

How can I view a GNS message?

If you have registered for email reminders you will receive e-mail alerts if you have a new GNS message to view. The email will include a link direct to the notice you have received.

PAYE Online can be used to set up email reminders, when there’s something new for employers to view, but you can view GNS messages at any time by:

  • logging onto PAYE online
  • using HMRC’s PAYE Desktop Viewer
  • using your Carval Uniwage payroll software

If you use Electronic Data Interchange (EDI), the message will be sent using the same EDI channel. EDI users can now choose how to receive GNS notices. To make the choice go to HMRC Online, select the Generic Notice option link and choose between receiving GNS notifications through either EDI or internet.

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