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Changes To Employment Allowance Coming In April 2020

What's changing exactly?

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POSTED BY ALISON MEAD ON 16/12/2019 @ 8:00AM

From April 2020, HMRC intends to make Employment Allowance available to businesses and charities where their employer National Insurance contributions bill was less than £100,000 in the previous tax year ...

Employment Allowance is changing in April, 2020. Will your business be affected?

Employment Allowance is changing in April, 2020. Will your business be affected?

copyright: simev / 123rf

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 and will affect around 100,000 employers. However, over 99% of micro-businesses and 93% of SMEs will still be eligible for it.

Until next time ...



ALISON MEAD

Would you like to know more?

If you're unsure of your Employment Allowance status or are wondering how to change your settings in Sage or Xero payroll, do give me a call on 01604 420057, leave a comment below or use the Messenger tool you can see in the bottom right of your screen to chat right now. Let's see how I can help you.

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About Alison Mead ...

 

Alison loves bookkeeping. She has been helping clients to be better bookkeepers in Sage 50 for over 22 years and has more recently added Xero Accreditation to her list of skills.

She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.

Alison combines her role at Silicon Bullet with running two network marketing businesses and is also a Regional Leader for 4Networking as she likes to keep busy.

You know what they say, if you want something done well ask a busy person!

Telephone:

01604 420057

Website:

https://www.siliconbullet.com