Employment allowance
From 6 April 2014 you can claim an employment allowance of up to £2,000 per year to set against your liability for employer’s Class 1 National Insurance.
This allowance will be available to all sizes of employer, including charities and community amateur sports clubs, but public sector bodies will not be eligible to claim. Where employers are connected, as in a group of companies, only one company in the group can claim.
You claim the allowance by ticking a ‘yes’ box on the first employer payment summary (EPS) submitted for the year. The allowance will be set against the employer’s Class 1 NIC liability as it accrues over the tax year by the payroll software. You don’t have to do anything more.