In April 2020, the government are planning to make changes to the employment allowance. Since 2014 many businesses have been able to claim £3,000 per year as a deduction against Class 1 NI, but from April things are changing!
Here is a quick summary
- Employers won’t automatically qualify for the EA (Employment Allowance) and must claim it each year. This will mean submitting a declaration confirming that you’ve checked and qualify by meeting the eligibility conditions.
- Employer with more than £100k of Class 1 NI won’t qualify
- Connected employers won’t qualify – sharing staff, premises or other resources
- EA will be counted as State Aid and the maximum state aid allowed is 200,000 euros
So even if items 2 to 4 don’t apply, item 1 will apply to every business wanting to make a claim.