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HMRC internal manual

Statutory Payments Manual

Paying and Recovering - SMP/SAP/SPP/ShPP: Small Employers' Relief (SER) employer for less than 12 months in the qualifying tax year

To work out if an employer who has been in business for less than 12 months in the qualifying year is entitled to SER:

  • calculate the total gross Class1 NIC liability in the year, excluding Class1A and Class1B NICs and deducting any NIC rebate due for those months,
  • divide the result by the number of months the employer has been in business, and
  • multiply the monthly figure by 12 to give the equivalent annual figure.

If the annual figure is equal to or less than the threshold for the relevant tax year, the employer is a small employer for SER.