20 Nov Employment Allowance reform eligibility rules from April 2020
Employment Allowance reform eligibility rules are changing from April 2020
Currently the employment allowance will reduce your employers’ (secondary) Class 1 National Insurance each time you run your payroll until the £3,000 has gone or the tax year ends (whichever is sooner).
In April 2020 the Employment Allowance will be restricted to employers with National Insurance contributions (NICs) liabilities of under £100,000 in the previous tax year from 6 April 2020.
It can only be claimed if total qualifying employers’ (secondary) Class 1 NICs liability in the previous tax year was less than £100,000. If you have multiple PAYE schemes or are part of a connected group of companies, the employers’ (secondary) Class 1 NICs liabilities of all companies, and/or PAYE schemes, needs to be added together to assess eligibility for Employment Allowance.
The allowance can only be claimed once across all your PAYE schemes and connected companies. You’ll need to decide which PAYE scheme to set the claim against.
Employment Allowance claims will need to be submitted each tax year. Claims will not automatically roll over from the previous tax year.
EA Assist & Payroll
If you struggle in keeping up with all the changes in PAYE filing and other PAYE statutory tasks then please give EA Assist a call. We offer bespoke payroll solutions tailored to suit your business needs. No need to worry about calculating Statutory Sick Pay or Holiday Pay, RTI or filing on correctly with HMRC. We can take care of all necessary reporting and payroll functions on your behalf.
Give us a call now on 01379 646943 or email us at firstname.lastname@example.org.