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Restriction of employment allowance for larger employers

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The government has published the draft Employment Allowance (Excluded Persons) Regulations 2020, which will restrict the NICs employment allowance to those employers with a Class 1 NICs liability below £100,000 in the preceding tax year, with effect from April 2020.

This £100,000 threshold will apply cumulatively in the case of connected employers and the allowance will be operated as de minimis state aid. The allowance will no longer be carried forward from one tax year to the next and employers will have to submit a fresh claim every year, with the requirements set out in a statutory notice.

Following an announcement at Budget 2018, HMRC consulted between June and August 2019 on a first draft of the regulations and statutory notice.

Issue: 1472
Categories: News