05-12-2018
Who can or cannot claim the Employment Allowance

The Employment Allowance of £3,000 per year is available to most businesses and charities to be offset against their employers Class 1 NIC bill. The allowance can be claimed as part of the normal payroll process.


An employer can claim less than the maximum if this will cover their total Class 1 NIC bill. Eligible employers that have not yet done so can still claim for the current tax year (as well as make a backdated claim for one further tax year).


The eligibility to claim the Employment Allowance was removed for limited companies with a single director and no other employees in April 2016. As the allowance was introduced as an inventive to take on staff, it was felt unfair that companies with a single director and no employees should benefit from the allowance.


There are a number of other excluded categories where employers cannot claim the Employment Allowance.


These include:



  • Persons employed for personal, household or domestic work, such as a nanny or au pair (unless they are a care or support worker);

  • a public body or business doing more than half their work in the public sector;

  • a service company working under ‘IR35 rules’ and your only income is the earnings of the intermediary.

Source: HM Revenue & Customs | 05-12-2018

Back

Post a Comment

Your email address will not be published. Required fields are marked *

*

  • ABOUT US

    the accountancy practice kent logo

    The Accountancy Practice is a Kent based firm specialising in small and medium sized businesses. We provide a friendly, professional service and regard our smallest client as important as our largest.
  • Latest News

    18-07-2019
    ICO issues notices of intention to fine BA and Marriott

    Following an ... read more

    17-07-2019
    Reminder to sign up for Making Tax Digital before August

    VAT registered ... read more

    17-07-2019
    Will you have to repay Child Benefit for 2018-19?

    The High Income ... read more

    More news

  • CONTACT US

    The Accountancy Practice
    10 Churchill Square
    Kings Hill
    West Malling
    Kent ME 19 4YU

    01732 897929

    Fax: 01732 897939
    info@theaccountancypracticeltd.co.uk


    Facebook
    Twitter
    Linkedin
  • Why choose us

    By working more closely with you than traditional accountants, The Accountancy Practice is able to gain a deeper understanding of your individual business needs. We are then on hand to support you with day to day issues and provide ongoing financial and taxation expertise. You can think of us as your virtual Financial Director.