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Confused about the Employment Allowance?

From 6th April 2016 Limited Companies will not be eligible to claim the Employment Allowance if they only have one employee who is a Director, or if the only employee earning above the ST (Secondary Threshold for Class 1 Ni) is a Director.

If the company has employees above the ST at the beginning of the year, but a sole Director becomes the only person above the ST part-way through the year, the Company is still eligible for the Employment Allowance for the whole year.

If the Company circumstances change part-way through the year, so more than one employee or Director earns above the ST, the Company is still eligible for the Employment Allowance for the whole year.

Further guidance can be found here;
https://www.gov.uk/government/publications/employment-allowance-more-detailed-guidance/single-director-companies-and-employment-allowance-further-employer-guidance

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