SMP Small employer's relief

Employment allowance

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When calculating the threshold for small employer's relief do you take employment allowance into consideration.


e.g. total class 1 NI £47,999

Employment allowance £3,000

Net NI, £44,999.

Is small employers relief available?

Replies (3)

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Euan's picture
By Euan MacLennan
20th Feb 2017 11:32

Good question.
Logic says No, but the GOV.UK guidance, which says "You get this if you paid £45,000 or less in Class 1 National Insurance in the last complete tax year", implies Yes.

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By lionofludesch
20th Feb 2017 11:36

I vote yes.

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By SteveHa
20th Feb 2017 12:01

HMRC say "No", but I didn't trust them.
However, SI 1994/1882 Reg 2, "Meaning of small employer" para (2) states "For the purpose of this regulation, the amount of an employer's contributions payments shall be determined without regard to deductions that may be made from them under any enactment or instrument".

This appears to support HMRC's interpretation, unfortunately :(

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