Small Employer Relief

This article will guide you through what 'Small Employer Relief' is, who is eligible to claim and how it can be claimed via KashFlow Payroll.

What is 'Small Employer Relief' & Who can claim it

An employer can only qualify for 'Small Employer Relief', if their Class 1 NICs fall below a certain level in the Financial Year.

HMRC or your accountant should be able to tell you if you qualify for Small Employers Relief but after a year of using KashFlow Payroll you will be advised if you qualify automatically.

Small Employers Relief means KashFlow Payroll will offset your monthly payments to HMRC with a compensation or recovery amount when you make any Statutory Payments such as Statutory Paternity Pay or Statutory Maternity Pay.

How to claim 'Small Employer Relief' via KashFlow Payroll

To enable KashFlow Payroll for applying small employer relief, you will need to make sure the option is ticked before finalising a pay period.

The 'Small Employer Relief' option can be found by navigating to: Company > Setup Details > Government > click 'Submit' for the changes to be applied.

Once you have completed the setup, KashFlow Payroll will automatically send an RTI EPS notification, indicating HMRC that the company will be claiming 'Small Employer Relief'.

IMPORTANT: if you have completed the above setting after finalising the first period with statutory payment, then the 'Small Employer Relief' will only be applied to periods going forward.

As well as that the report will also list the 'Small Employer Relief', from the following/future periods.

For the payments report please read the following article: https://kashflowpayroll.zendesk.com/hc/en-us/articles/115000463006-Payments-Report