Employment Allowance reform – eligibility rules for the Employment Allowance are changing

Employment Allowance will be restricted to employers with NIC liabilities of under £100,000 in the previous tax year from 6 April 2020.

• Employment Allowance can only be claimed if total qualifying employers’ (secondary) Class 1 NIC’s liability in the previous tax year was less than £100,000.  If you have multiple PAYE schemes or are part of a connected group of companies, the Employers’ (secondary) Class 1 NICs liabilities of all companies, and/or PAYE schemes, needs to be added together to assess eligibility for Employment Allowance.
• The Allowance can only be claimed once across all your PAYE schemes and connected companies.  You’ll need to decide with PAYE scheme to set the claim against.
• Employment Allowance claims will need to be submitted each tax year.  Claims will not automatically roll over from the previous tax year.

If we run your payroll this will be taken care of.  If you run your own payroll you need to make sure you check and claim if you are eligible to do so.

If you require any assistance or further advice, please contact us