Employment Allowance Reform

Eligibility rules for the Employment Allowance are changing

Employment Allowance will be restricted to employers with NICs liabilities of under £100,000 in the previous tax year from 6 April 2020.

Employment Allowance 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, need 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.