11-07-2019

New United Kingdom legislation is now available in Gov around draft legislation being put forward for 202 changes in the management of the employment allowance.

The technical consultation which was published is looking for views and responses to the regulations as well as other documents created to support the draft. The new legislation is expected to go live in April 2020 and is meant to restrict access to the allowance through new eligibility rules and as such the employment allowance will become restricted only to smaller businesses. The consultation will close on the 20th August 2019.

HMRC welcome comments on the draft documents, which will be of most interest to employers and businesses, particularly those which are larger or that are in receipt of state aid, and especially if it is state aid provided under the de minimis rules.

The draft legislation will provide that employers with a Class 1 secondary National Insurance liability of £100,000 or more in the preceding tax year are ineligible for the Employment Allowance.

To claim the Employment Allowance, employers must have space for the full Employment Allowance (currently £3,000) within their relevant de minimis state aid threshold.

The draft statutory note sets out the information requirements for employers claiming the Employment Allowance from April 2020.

The draft tax information and impact note will help explain the potential impact of the proposals on the economy, business, individuals, and other areas.


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