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In order to qualify for small employer relief, your liability for national insurance for the last complete tax year needs to be £45,000 or less.
An employer hiring a nanny will often meet the criteria of small employer relief.
This means that for statutory payments such as maternity pay, paternity pay, shared parental pay and adoption pay, you can reclaim 100% of these payments plus an additional 3% to help towards the cost of your employers NI.
It is important that this is noted in the payroll software, so if you ever have statutory payments, they will get deducted off your tax and national insurance liability each quarter.
Employers with a liability of more than £45,000.00 in the last complete tax year can only claim back 92% of the above statutory payments.
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