Q. I run a small independent chemist which has three employees. I was told that my business would not qualify for the employment allowance as a good deal of our work involves dispensing NHS prescriptions. Is that true?

A. The initial guidance from HMRC appeared to indicate that pharmacies would not qualify for the employment allowance, which is worth up to £2000 per year. However, revised guidance from HMRC confirms that independent pharmacies that conducting a business, including over the counter sales as well as dispensing NHS prescriptions, are entitled to claim the employment allowance.

Q. How do I go about claiming the £2,000 employment allowance?

A. From April 2014 most employers will be able to claim a £2,000 annual allowance to set against the employer's class 1 NICs due on their employees' wages. It will be easy to claim. All you need to do is a tick box on the first Employer Payment Summary (EPS) submitted for 2014/15. Your payroll software will show you how, or we can do that for you.

Once the claim is made it stays in place for all future tax years, until the PAYE scheme is closed or the Government withdraws the allowance. Only employers can claim the employment allowance. It can't be set against class 2 or 4 NICs paid by the self-employed.

For clients who take advantage of our payroll services we will be ensuring that the maximum amount of employment allowance available is claimed.