The Employment Allowance is £3,000 for the tax year 2019/20. The allowance can be set off against your Employer’s NI bill.
The amount of allowance you can claim is capped at the amount of your employers NI bill in a month (if under £3,000) and any unused allowance will be carried forward to use in the following month.
From April 2020, the £3,000 employment allowance will only be available to businesses that had an employer’s NIC liability less than £100,000 in the previous year. Where the employers are connected the £100,000 threshold will apply to their aggregated liability.
Companies with the Director as the only employee
Where the director is the only employee who is paid earnings above the secondary threshold, the company will not be eligible to claim the Employment Allowance.
Connected and Group companies
If 2 or more companies are connected or are part of a group only one company is able to claim the Employment Allowance. The companies can decide amongst themselves who makes the claim.
If you need help or advice on how to claim, please give us a call on 01908 227055.
Last updated: 24 April 2019