Following the summer budget in July 2015, the Employment Allowance increases from £2,000 per annum, to £3,000 per annum, from 6 April 2016.
This is great news for employers!
But depending on the type of company you are, you may not qualify for the Employment Allowance any longer.
From 6 April 2016, any Payroll schemes which have just one employee – including the sole Director – then your company will no longer be eligible for the NIC Employment allowance.
So if you are a sole Director/shareholder of your Limited Company, and do not employ any other employees – then you are not entitled to this allowance.
Employers that were eligible in 2015-16 but are now not eligible tax year 2016-17 – will need to notify HMRC of this through an Employment Payment Summary (EPS) submission through their payroll.
For more details on how to do this, contact us at AJ Accountancy.
Call on 07799 398555 or 01234 713151 or email email@example.com