The Employment Allowance (Increase of Maximum Amount) Regulations, SI 2016/63, come into force on 6 April 2016 and increase the amount of the employment allowance, which employers can deduct from their payments of secondary class 1 NIC, from £2,000 to £3,000 with effect from that date.
The Employment Allowance (Increase of Maximum Amount) Regulations, SI 2016/63, come into force on 6 April 2016 and increase the amount of the employment allowance, which employers can deduct from their payments of secondary class 1 NIC, from £2,000 to £3,000 with effect from that date.
Additionally, following a recent HMRC consultation, The Employment Allowance (Excluded Companies) Regulations, SI 2016/Draft, specify that companies with only a single employee, who is also a director of the company, cannot qualify for the employment allowance against employer’s NIC from 6 April 2016. The CIOT has warned that a bid to exclude one-person businesses from claiming the NIC employment allowance will be ‘too easy to dodge’. CIOT tax policy director John Cullinane said: ‘It will simply have the effect of penalising single director-employee limited companies that are unable to appoint another person as director or employee in order to claim employment allowance. The exclusion is also open to abuse, in that making a single payment after the director has resigned would seem to enable the company to escape the exclusion and hence qualify for employment allowance.’
The Employment Allowance (Increase of Maximum Amount) Regulations, SI 2016/63, come into force on 6 April 2016 and increase the amount of the employment allowance, which employers can deduct from their payments of secondary class 1 NIC, from £2,000 to £3,000 with effect from that date.
The Employment Allowance (Increase of Maximum Amount) Regulations, SI 2016/63, come into force on 6 April 2016 and increase the amount of the employment allowance, which employers can deduct from their payments of secondary class 1 NIC, from £2,000 to £3,000 with effect from that date.
Additionally, following a recent HMRC consultation, The Employment Allowance (Excluded Companies) Regulations, SI 2016/Draft, specify that companies with only a single employee, who is also a director of the company, cannot qualify for the employment allowance against employer’s NIC from 6 April 2016. The CIOT has warned that a bid to exclude one-person businesses from claiming the NIC employment allowance will be ‘too easy to dodge’. CIOT tax policy director John Cullinane said: ‘It will simply have the effect of penalising single director-employee limited companies that are unable to appoint another person as director or employee in order to claim employment allowance. The exclusion is also open to abuse, in that making a single payment after the director has resigned would seem to enable the company to escape the exclusion and hence qualify for employment allowance.’
