The employment allowance currently provides businesses and charities with up to a £3,000 reduction in their employer NIC bill.
The government has announced that it will now focus the employment allowance on smaller businesses. From April 2020 it will therefore restrict access to employers with an annual NIC bill below £100,000. The government estimates this means that 99% of micro-businesses and 93% of small businesses will still be eligible for the employment allowance.
Businesses with an annual NIC bill of £100,000 or more will no longer be eligible to claim the employment allowance from April 2020.
This measure will be implemented from 6 April 2020.
Small businesses and micro-businesses with an annual NIC bill below £100,000 will welcome the fact they will continue to be able to access the employment allowance.
Global Employer Services Policy Lead