CropTec Show
21 October 2016 | Online since 2003
Auto Trader Ltd

FarmingUK Logo
24 April 2014 00:35:13 |News,Property News

New employment allowance scheme to help farms

A new scheme has been introduced from 6 April 2014 that will help fund the cost of employing staff. Contained in the National Insurance Contributions Bill there is a new allowance of £2000 that can be claimed by virtually all employers with just a few exclusions. This means, for example, that a business can pay its first employee a salary of up to £22,400 per annum without having to pay any employer’s National Insurance Contributions (NICs).
"This new scheme will be extremely useful to rural businesses with a small number of employees since, if an employer’s NIC liability for the year is less than the £2000 allowance, it will at a stroke reduce the contribution that they have to pay to zero," say Mike Harrison, Partner in the Landed Estates and Rural Business Group of UK top 20 Chartered Accountant Saffery Champness.
"It is however not available to create a refund if not used or a loss to carry forward."

Likewise an employer in more than one PAYE scheme will only be able to apply the allowance to one scheme as it is awarded per employer and not per scheme.

In order to gain the benefit employers need to ensure they have ticked the box on their payroll software. It is also not necessary for them to have been operating the PAYE scheme for a whole tax year, and new employers for the 2014/15 tax year should also be able to benefit from it.

There are some exclusions, including domestic staff, so it cannot be offset against the NICs of an employee whose job is connected with their employer’s personal, family, or household affairs.

Mike Harrison says: "Another measure included for anti-avoidance purposes is that connected entities will each be unable to take advantage of the scheme, and such structures must decide which one will qualify for the allowance. This is to ensure that employers do not set up a number of different entities, all with different PAYE schemes.

"This is a small yet significant concession to business which we consider will help in getting more people into work and in crossing that line where a first or additional employee actually becomes viable. In the rural sector it should be an incentive to rural business to secure additional employment, or to safeguard existing jobs.

"We also look forward to the abolition of employer’s NICs on under 21 year olds from April next year."


0 Comment


Please enter your name


Please enter your email

Please enter valid email


Please enter your comment

Post Comment

Your comment has been submitted successfully. Please wait for admin approval.


No comments posted yet. Be the first to post a comment

Australia | 21 October 2016
Local bloc seeks to counter bid for Australian cattle empire

Nationalist lawmakers have teamed up with local ranchers to try to counter a bid involving Chinese buyers for the S. Kidman & Co. cattle empire, in what would be one of Australia’s biggest agribusines...

USA | 21 October 2016
Arizona farmers give back by donating milk to food banks

43 million gallons of milk have been dumped in fields across the country since the start of the year. That's why many American farmers have been forced to do with lower milk prices not bringing in...

USA | 21 October 2016
Your groceries may be cheaper, but farmers and supermarkets feel the pain

If you’re just a little irked that gasoline prices have edged up recently, maybe this will cheer you up: Groceries are a bargain. Average supermarket prices fell 2.2% in September from a year ago, ...

Canada | 21 October 2016
Farmers fail to rally to tax revolt talk

If farmland property taxes are too high, don’t pay them. That’s what Dugald farmer Edgar Scheurer suggested while commenting on Facebook about Manitoba Co-operator stories on skyrocketing farmland ...

United Kingdom | 21 October 2016
Woman killed in cattle attack on family farm

A woman has been killed after she was attacked by cattle on a family farm in Co Derry. The pensioner, who has been named locally as Brigid McKeefry and is aged in her 70s, was rushed to the Causewa...

Trending Now


Top stories you may have missed