Employer NICs holiday - what to do at the end of the tax year

This guide explains how to complete the employer National Insurance contributions (NICs) holiday end-of-year Return.

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How to obtain a NICs Holiday end-of-year Return

If you have applied for the NICs holiday and you have received your acknowledgement from HM Revenue & Customs (HMRC):

  • you will be sent a paper NICs Holiday end-of-year Return (form E92 and E89s)
  • if you haven't received a NICs Holiday end-of-year Return, please phone HMRC's Employer Helpline and request your forms

Contact HMRC's Employer Helpline

These forms must be returned to HMRC, no later than 19 May 2014. There is no provision for employers or agents to file the NICs Holiday end-of-year Return electronically.

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Before you start to complete your return

You should have already entered the total amount of employer Class 1 NICs you are entitled to withhold on your final Employer Payment Summary (EPS) for the tax year. If you have not already done this you must submit a final EPS for that tax year showing this figure and all the other payments recovered for that tax year.

For more information, see HMRC's guide 'What payroll information to report'.

What payroll information to report

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Completing form E89

If you are using the interactive recording tool available on HMRC's website, make sure that you:

  • have entered all the 2013-14 information
  • print off the E89(s) for each employee along with the summary sheet for the tax year

Guidance for employers not using the interactive recording tool

If you did not use the interactive tool you must complete the form E89 enclosed with your NICs Holiday end-of-year Return. If you need more forms E89 you can use photocopies of the blank form. Complete a separate E89 for each employee for whom you have withheld employer Class 1 NICs, ensuring you complete the following boxes:

  • Employer name
  • Employer PAYE reference
  • Tax year
  • Employee name
  • Employee National Insurance number
  • NICs holiday start date
  • NICs holiday end date (remember the end date cannot be later than 5 September 2013 when the NICs holiday scheme ended)
  • Total employer NICs withheld - where you find this figure from depends on the method you used to operate your payroll. It is the difference between the amount of:
    • Employer Class 1 NICs calculated and included with the total of employees' and employers' Class 1 NICs recorded on your commercial payroll software or the employer database within HMRC's Basic PAYE Tools.
    • ¬†Employers' Class 1 NICs you paid to HMRC for each employee. You do not need to complete each weekly or monthly amount on the E89, the yearly total for each employee is sufficient for the purposes of the return.

Remember the NICs holiday scheme ended on 5 September 2013 and no employer NICs can be withheld on earnings due to be paid after that date.

There is a limit of the amount of Class 1 employer NICs you can withhold. This limit is £5,000 per employee and for a maximum of 10 employees. If you reach this limit before the end of the employee's individual holiday period, you must pay employer Class 1 NICs on any further earnings you pay to that employee from that date.

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Completing form E92

The front of form E92 asks for information about your business and the amount of the NICs holiday that you were entitled to withhold for the tax year.

The back of form E92 tells you what to do after you have completed the front of the form and what happens next.

You should complete the following steps in order - including either Step 2a or 2b, depending on which method you used to complete your form(s) E89.

Step 1

Complete all the 'Employer details' boxes on the front of the form.

Step 2a

If you have been using the interactive recording tool, transfer the figure from the 'Total employer NICs withheld' box on the E89 summary sheet into box 4 'Total amount of employer NICs that you were entitled to withhold'. You should include pounds and pence.

Step 2b

If you have not been using the interactive tool, add together the 'Total employer NICs withheld' on all of the forms E89 and enter the total of all the E89s in box 4 'Total amount of employer NICs that you were entitled to withhold'. You should include pounds and pence.

Step 3

Complete all the 'Employer declaration' boxes on the front of the form. The declaration can be signed by an employer or a representative. If you use an agent to file your return you must keep a written record confirming that the information they have filed on your behalf is correct. Any written confirmation such as a letter or email is acceptable.

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Sending your return back to HMRC

Attach all form(s) E89 to the NICs Holiday end-of-year Return (E92) and post them to:

National Insurance Contributions and Employer Office
PAYE Employer Team (NIC Holiday)
Room BP 1302 Benton Park View
Longbenton
NE98 1ZZ.

If you need to amend your NICs Holiday end-of-year Return after you have sent it to HMRC you should contact HMRC's Employer Helpline.

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Maintaining your records

You don't need to keep a copy of forms E89 and E92, but you do need to maintain the records you used to prepare and file your return, in case HMRC requests supporting evidence. The maximum amount of holiday you can claim per employee is subject to a £5,000 limit. The NICs holiday scheme ended on 5 September 2013.

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