Autumn Statement 2015 saw the announcement of an increase to the Employment Allowance from £2,000 per annum to £3,000 for those eligible companies, all good news you might think!
Whilst most of us were paying attention to this detail at least 150,000 limited companies with just a Director as its employee were noting that effective April 2016 they will no longer be eligible to claim the Employment Allowance.
Introduced in April 2014 the Employment Allowance was introduced as a means to support businesses and charities to expand, this remains the overlying principle, and so the change ensures improved targeting of employers who take on additional staff, meaning that the Employment Allowance is meeting its objective by supporting employment.
Those claiming the allowance will continue to do so as long as they are eligible the restriction only applies to limited companies that only have a Director as an employee.
