Changes To Employment Allowance Coming In April 2020

From April, HMRC will make Employment Allowance available to anyone where their employer NIC is less than £100,000 ...

If your organisation exceeds this, then you are no longer eligible to claim Employment Allowance. Larger employers much ensure that the Eligible for Employment Allowance box is unticked in your payroll company settings.

The EU considers Employment Allowance to be a form of state aid which essentially places some larger businesses in an 'advantageous position' over their competition.

You can't claim Employment Allowance if:

- You're the director and only employee when you're paid above the secondary threshold. - You employ personal, household or domestic help unless they're a carer or support worker. - You're a public body, or more than 1/2 your trade is in the public sector (unless you're a charity). - You work under IR35 rules

These changes effectively withdraw Employment Allowance for medium to large companies. This will affect around 100,000 employers. Over 99% of micro-businesses and 93% of SMEs will still be eligible for it.

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