Can I Claim the Employer’s Allowance for 2023/24 if My Business’s NIC Bill Exceeded?

Q. The Payroll for My Business has Increased During 2022/23, So the Employer’s NIC Bill Topped £100,000 for the First Time. Does this Mean I Can’t Claim the Employer’s Allowance for 2023/24? Is there Anything I Can Net Off Against the NIC Liability to Bring it Down Below the £100,000 Threshold?

A: You are correct that you will not be able to claim the Employer’s Allowance of £5,000 for 2023/24 as your employer’s NIC liability for the previous tax year (2022/23) has equalled or exceeded £100,000. There is no mechanism for setting off any other liability to reduce the total of the Employer’s NIC for this calculation. However, you shouldn’t include any employer’s NIC on “deemed payments” to contractors caught by the off-payroll working rule.

 

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