Employer's NIC Allowance

What was the problem?

expert advice

We pointed out to the hairdresser that whilst we were preparing his annual business accounts and tax return, we noticed that Accountants who had processed the payroll, had not claimed the Employer’s NIC Allowance. After a more in-depth review, we ascertained that it had not been claimed for the preceding four years.

What was the solution?

guidance and strategy

Having identified that this business had been missing out on ‘free cash’ and after getting authority from our client, we liaised with HMRC and after a series of communications, we were able to reclaim several years’ worth of previously unclaimed Employer’s NIC Allowance. To our client’s delight, this resulted in them receiving a cheque from HMRC for £10,799. 

What was the result?

great results

Our client was delighted that we were able to reclaim £10,799 of previously unclaimed allowances. He was also delighted that as a result of our thoroughness and alertness, he would be better off by £4,000 per year going forward; subject to HMRC keeping the Annual NIC Allowance Scheme alive.

In addition to the existing services that we provided to our client, he decided that it made total sense to outsource his payroll to us; his rationale was:

  • it meant payroll would be run correctly and on time, 
  • any future changes made by HMRC would be dealt with as a matter of course meaning that he would not miss out any future allowances, and
  • he would get back his Friday afternoons back as the responsibility of running the weekly payroll was ours and not his; the business owner now has more time to do what he is good at which is running his hairdressing business.

It is vital for businesses to claim every available allowance in order to minimise their tax liabilities. Without a comprehensive approach, you can lose money that is rightfully yours. Monetta’s expertise helps you to make the most of tax allowances and simplifies compliance. Contact your local office or use our enquiry form to get in touch today.


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