From April 2016, single director companies will not be able to claim the Employment Allowance as it goes contrary to the policy of encouraging employers to take on more employees when these companies will not be doing so.
I am being asked increasingly whether single director employers could employ one person for a short period of time and then dismiss them and still claim the Allowance.
The answer to that question is that the draft regulations do not prohibit such action.
However, there is an ongoing consultation looking at this specific issue and I would not be surprised to see regulations being introduced which will protect against such avoidance
Watch this space!
