Your business might qualify for Small Employer’s Relief (SER) if:
- you pay any kind of statutory payment (other than sick pay)
- you paid £45,000 or less in Class 1 National Insurance (not including what you claimed for Employment Allowance) in the tax year prior to the employee’s qualifying week or matching week (for adoptions). For example, your employee’s qualifying week is 6 August 2017 to 12 August 2017, which is in the tax year 2017-2018. In this instance, your qualifying year for SER would be 2016-2017.
If you’re a small employer, you can reclaim 100% of employees’ statutory payments (not including statutory sick pay) plus an extra 3% relief, which means you can reclaim 103%. If you’re not a small employer, you can still reclaim 92%.
Check with HMRC if you aren’t sure whether you’re qualify for SER.
To set up Small Employer’s Relief (SER)
- Go to the Payroll settings page. Go to the Gear icon > Company Settings > Payroll. (Note that this option is not in Setup, but can be found after you finish setting up.)
- Select Yes for Does your business qualify for Small Employers’ Relief. If you select Yes, we generate an EPS filing and state that you’re eligible for Small Employer’s Relief. You will be prompted to submit this EPS filing after you’ve run all your payroll and submitted your FPS filings for your first P32 Employer Payment Record.
- Save your changes.