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.

Latest Tweets

HMRC has announced their new Advisory Fuel Rates (AFRs) for Employees and Directors using a company car.

To read more, click the link 👉 https://bit.ly/3EiHCgr

The Energy Bill Relief Scheme will help to cut energy prices for businesses, charities and public sector organisations, such as schools and hospitals.

The scheme will run for 6 months and cover energy used from 1 October 2022 to 31 March 2023.

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