Section 4 of the National Insurance contributions Act 2014 (c.7) requires HM Revenue and Customs (HMRC) to make arrangements detailing how persons (employers) qualifying for the Employment Allowance may receive it from 6 April 2014.
HMRC’s arrangements provide that persons qualifying for the Employment Allowance may make deductions against their qualifying payments (secondary Class 1 contributions, which are not excluded liabilities under section 2) on a single Pay As You Earn (PAYE) scheme during the tax year.
The arrangements set out how persons should provide notice to HMRC of their intention to claim the Employment Allowance by providing details of the PAYE scheme from which they want to deduct the Employment Allowance. In addition, they specify how a person may change their notice for a second or subsequent tax year. They also set out what a person must do if having claimed the Employment Allowance they discover in the tax year that they do not qualify for an Employment Allowance or they have claimed against more than one PAYE scheme.