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Markel Tax

29 Oct 2018

Autumn Budget 2018 - Employment Allowance Restricted

Employment allowance was introduced in the 2013 Budget and allows employers to reduce their liability for secondary Class 1 National Insurance Contributions (‘Employer NIC’) by £3,000 per annum.

From April 2020 an employer will only be entitled to claim Employment Allowance if that employer had an Employer NIC bill of less than £100,000 in the previous tax year.

The change effectively withdraws Employment Allowance for medium to large sized companies, with many employers with a gross annual wage bill of more than c.£850k affected by this change.

Given the low value of Employment Allowance, the change targets the allowance at employers who are likely to consider the relief that it gives, material.

Tagged Budget Employment taxes and share scheme
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29 Oct 2018

Our comprehensive Autumn Budget 2018 review