The change effectively withdraws Employment Allowance for medium to large sized companies, with many employers with a gross annual wage bill of more than c.£850k affected by the change.
Given the low value of Employment Allowance, the change targets the allowance at employers who are likely to consider the relief that it gives, material.
Over 99% of micro-businesses and 93% of small businesses will still be eligible for the Allowance.
However regardless of size of company, you can’t claim the employment allowance if:
• you’re the director and the only employee paid above the Secondary Threshold • you employ someone for personal, household or domestic work (like a nanny or gardener) - unless they’re a care or support worker • you’re a public body or business doing more than half your work in the public sector (such as local councils and NHS services) - unless you’re a charity • you’re a service company working under ‘IR35 rules’ and your only income is the earnings of the intermediary (such as your personal service company, limited company or partnership).
Back to Contents
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 357 of 598
Made with FlippingBook - Online magazine maker