This guide explains how to complete the employer National Insurance contributions (NICs) holiday end-of-year Return.
On this page:
If you have applied for the NICs holiday and you have received your acknowledgement from HM Revenue & Customs (HMRC):
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.
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'.
If you are using the interactive recording tool available on HMRC's website, make sure that you:
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:
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.
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.
Complete all the 'Employer details' boxes on the front of the form.
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.
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.
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.
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
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.
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.