New Forest

13/06/2022

Is your business entitled to the employment allowance?

The Employment Allowance (EA) is a £5,000 allowance set against employer National Insurance Contributions (NICs) and has to be claimed each tax year by qualifying employers. The EA was increased from £4,000 to £5,000 this tax year to help to soften the blow of the 1.25% increase in employer contributions, now calculated at 15.05%.

If two or more companies or charities are connected with one another, then only one of them may claim the EA.

Employers are not eligible to claim the EA where their employers’ Class 1 National Insurance liabilities in the previous tax year exceeded £100,000.

Another important exclusion from the EA are single director companies where the director is the sole employee of the company.

For more information on this, please contact James Alesbury on 023 8046 1222.

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The 130% super-deduction for investment in plant and machinery was introduced in the March 2021 Budget, to encourage capital expenditure.

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Director Michaela attended the first Executive Association Solent Lunch of 2023 last week and met up with their Chairman, Matthew Smith. It was good to attend the first meeting of the year, meet other delegates and hear from Adam Kiddell, Founder of the Dorset Concierge.

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