£3,000 Annual Employment Allowance
As you may have seen from our regular updates and blog posts, the £3,000 Employment Allowance reduces the amount of National Insurance employers have to pay by up to £3,000 per annum and is a welcome measure for all employers who are entitled to the relief.
The allowance is claimed by employers through the operation of their payroll, meaning that making the claim is straightforward and simple.
Sole director companies without any additional employees cannot claim the allowance. However, if a company does have one or more employees, at least one other person, in addition to the director, must be paid above the secondary NIC threshold of £8,632 (2019/20) in order to qualify for the allowance (subject to assessment and associated companies).
It is important to note that from 6 April 2020 the Employment Allowance will apply to smaller businesses only. Businesses with an employer NIC bill of £100,000 or more in the previous tax year will no longer be able to claim the allowance.
If you require any additional information, please contact our Payroll Partner, Graeme Sheridan, on the details below:Graeme Sheridan
direct dial: 01942 292506
mobile: 07712 679064