Hi there - im wondering if someone can help me - I run a small business and do my own books as I have a PDA but had heard from a friend that small businesses are entitled to a lump sum for National Insurance??? They received £2000 via their accountant mentioning this to them but they didn't know specific details - Im not even sure if its in regards to National Insurance or not - apologies for being very vague but I just hope im not missing out on something! We live in Scotland , many thanks for any help received!
If you are self employed with no staff, you will not be running a PAYE scheme so this is of no use to you. If you have staff and you suffer NIC on their wages, you may benefit, dependant on their level of earnings.
If you are a limited company, let me know and I will explain a little further.
By the way, the £2000 is not given to you as a lump sum. When you process your wages through your payroll scheme, and you have an employers NIC liability, the amount is reduced to NIL.. up to the point where you have claimed £2k. So in Month one, lets say your employer NIC is £25 - you don't have to pay it. Then in month 2, it is again £25 - you don't have to pay it. By month 2, you would have had £50 employment allowance. And that would go on for the rest of the year until you had claimed £2k. After that you would pay any further employers NIC
Note that the allowance is against employers allowance only, not employee NIC.
I am not a payroll bod, but this is my understanding. Happy to be corrected :)
