Unlock HUGE Savings by Ticking This ONE Box for Employers

1 Aug 2023 · 1 min

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In this video, Robin Waite explains the UK Small Employers' Relief, a payroll tax incentive that provides a £5,000 reduction on the first £5,000 of employer National Insurance (NI) contributions. The relief is only available to businesses that employ more than one person; it does not apply to sole company directors. By simply ticking the designated box on the payroll submission when the business has at least two employees (full‑time or part‑time) and is making NI contributions, the employer can claim the full £5,000 benefit, resulting in a substantial cost saving. The presenter emphasizes that this single action can close a significant cost gap for employers with staff.

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There's something called small employers relief. The two things I want you to pay attention to are small employers relief, which most people watching this video will it will apply to. This essentially gives you a £5,000 benefit on the first £5,000 worth of national insurance contributions that you pay as an employer. If it's just you, if it's just a if you're a one-person business, you can't as a company director. This doesn't apply. You can't tick that box, unfortunately. So you have to pay those first £5,000 worth of national insurance contributions. This only applies if you've got basically more than one employee. So if there's 2 people, full-time, part-time, doesn't matter, you can tick that box. And provided there's National Insurance contributions being made by the business, you get that benefit of the first £5,000 worth of National Insurance contributions paid for. So that's quite a huge benefit if you do employ people. If you've got employees, tick that box. Basically closes the gap down. So just ticking that one box creates an enormous amount of savings.