We understand that many of you have recently received a letter from HM Revenue & Customs (HMRC) regarding the Employment Allowance. We want to reassure you and provide some clarity on this matter.
The Employment Allowance is a valuable annual reduction in employers' National Insurance contributions (NICs) for eligible businesses. For the 2024/25 tax year, this allowance remains at £5,000, potentially offering significant savings for your business.
We want to emphasize that as part of our comprehensive service, we already claim this allowance automatically on behalf of all eligible clients. You don't need to take any additional action in response to HMRC's letter.
This allowance is applied at the start of each tax year and reduces your employers' NICs until the £5,000 is fully utilized or the tax year ends, whichever comes first.
If you have any questions about the Employment Allowance or how it applies to your specific situation, please don't hesitate to contact us. We're here to ensure you receive all the tax benefits you're entitled to.
Rest assured, we're continuously monitoring your accounts to maximize your tax efficiency.
