Be prepared for
employment
allowance changes
A
mid all the continuing drama surrounding
Brexit and England’s unsuccessful defence of
the Ashes, the publication of draft legislation for
new restrictions to the National Insurance (NI)
employment allowance (EA) may have passed
you by. t You won’t be entitled to EA if your liability to
employers’ Class 1 NI in the previous tax year
topped £100,000;
Don’t panic – allow us to explain how your business
may be affected. t If you share resources such as staff and premises
your eligibility must be reassessed;
submitting a declaration confirming that you’ve
checked and are satisfied that you are eligible;
Since April 2014, most employers have been entitled
to a deduction from their Class 1 NI bill currently
worth £3,000 per year. t The EA counts towards the maximum amount of
state aid (£200,000) you can receive in a rolling
three-year period. You must be able to
accommodate the whole £3,000 EA within the
limit or you will lose your entitlement to it.
Next year general changes will be made to the way
the allowance works and some businesses will lose
their entitlement. If you’re unsure about how you’ll be affected by the
changes to EA in 2020, please contact us via the
details below for straightforward advice.
Published by HMRC at the end of June, the draft
legislation was subject to consultation until August
20 but it’s not expected that any of the key points
will change, though there may be some tweaks to
ensure that the legislation achieves its objectives. Worcester
tel: 01905 612347
email: [email protected]
Let’s start with the (recent) history bit.
All employers will be affected in some way by the
new legislation, which comes into force on April 6,
2020.
The main changes are as follows:
t You won’t automatically qualify for the EA and
you must claim it every tax year. This will involve
Evesham
tel: 01386 579999
email [email protected]
Tewkesbury
tel: 01684 290123
email [email protected]
www.hwca.com/accountants-worcester
We help business owners to
BUILD A MORE VALUABLE BUSINESS
Short to medium-term growth and profitability is essential, but do they ensure you
maximise the long-term value of your business?
Haines Watts can help you look at your business in a different way and support you in building value.
To find out more contact Haines Watts, your local award winning accountants
Suite 1A, Shire Business Park, Wainwright Rd, Worcester, WR4 9FA - 01905 612347 [email protected]
Vale Business Centre, 9 Abbey Lane Court, Evesham, WR11 4BY - 01386 579999 [email protected]
www.hwca.com
The Grapevine
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