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HMRC Employment Allowance Letter

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Category:Latest News

If you have received a letter from HMRC regarding the government’s Employment Allowance and we complete your payroll, then be assured we have already claimed or commencing claiming this allowance at the start of the tax year. This will be shown on the P32 report that is sent to you monthly.

The letter informs employers that they are eligible to use up to £5,000 allowance towards their employer National Insurance contributions. The £5,000 balance starts in April and is reduced each month by the value of your employer National Insurance. This reduction will continue until you either reach a nil balance or up to the end of the tax year (5 April 2023). Please follow the link for an example of the HMRC Letter.

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