More Great communication from HMRC resulting in panic.
From 6th April this year there are changes to the eligibility for claiming the Employers Allowance. This is worth up to £3,000 and is design to encourage employment. Will you be affected by the changes? Chances are, if you qualify now, probably not.
If you employ people over the primary NI threshold (currently £166pw), or have two directors both being paid above the primary threshold, you currently qualify for the allowance. This is not changing.
If your secondary NI liability for the previous tax year exceeds £100,000 or you receive other State Aid that take you over a defined de minis state aid limit based on your industry sector, then you will lose your EA or have it restricted. For these businesses, the EA does not make a lot of difference or provide the same incentives for which it was intended.
Employers Allowance Changes
Posted on
More Great communication from HMRC resulting in panic.
From 6th April this year there are changes to the eligibility for claiming the Employers Allowance. This is worth up to £3,000 and is design to encourage employment. Will you be affected by the changes? Chances are, if you qualify now, probably not.
If you employ people over the primary NI threshold (currently £166pw), or have two directors both being paid above the primary threshold, you currently qualify for the allowance. This is not changing.
If your secondary NI liability for the previous tax year exceeds £100,000 or you receive other State Aid that take you over a defined de minis state aid limit based on your industry sector, then you will lose your EA or have it restricted. For these businesses, the EA does not make a lot of difference or provide the same incentives for which it was intended.
No need to panic!
https://www.gov.uk/guidance/changes-to-employment-allowance
This entry was posted in Business Tax, News and Comments, Uncategorized.