Small Employers' Relief

Small employer's relief is based on your employer and employee NI liability.

Your company qualifies for Small Employers’ Relief if:

Your NI contributions were £45,000 or less in the full tax year before the employee's qualifying week
in the case of adoption, the matching week

You may not have been an employer for some or all of the tax year prior to the employee’s qualifying week. You must check your Small Employers' Relief status with HMRC.

Reclaim Small Employer's Relief

You must process all pay runs and submit your Full Payment Submissions (FPS) first.

You can then reclaim Small Employers’ Relief.

TIP: Your EPS submission is monthly or quarterly, depending on your HMRC reporting frequency.

Complete all pay runs for month one or quarter one.
Go to the Summary tab.
Within the HMRC Real Time Information (RTI) Scheme area select Record Payment / EPS.
On the Eligible for small employer’s relief list, select Yes.
NOTE: You can also state whether you’re eligible for Employment Allowance in the EPS submission.
Enter the payment date, then select Next.
If applicable, enter any CIS deductions suffered.
Select Next.
Enter your Government Gateway credentials, if not already saved.
Select Submit.

You’ve now reclaimed Small Employers' Relief. Your liability to HMRC reduces by the statutory payment amount or more. Check this in The P32 Employer Payment Record.

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