Caravan and holiday park businesses are being urged not to miss out on a £2,000 annual reduction in their employment costs from 6 April 2014.
The new Employment Allowance will see up to 1.25 million UK employers benefit from the annual reduction in their Class 1 secondary national insurance contributions (NICs).
More than 90 per cent of those benefiting will be smaller businesses and around 450,000 firms will be taken out of paying Class 1 secondary NICs altogether.
Employers will be able to indicate that they wish to claim the allowance through standard payroll software or HM Revenue & Customs’ (HMRC) Basic PAYE Tools. They will then need to reduce their Class 1 NICs payment by an amount equivalent to the amount due, up to the £2,000 limit.
For example, if the employer’s Class 1 NICs are £1,200 each month, in April the Employment Allowance used will be £1,200 and in May it will be £800, making £2,000 in total.
Milsted Langdon provides a fast, efficient, payroll bureau service that offers a cost-effective alternative to dealing with payroll in-house, as well as ensuring employers stay compliant with HMRC requirements, such as Real Time Information reporting. For more information, please contact us.