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Employment Allowance

February 24, 2020 by JSO


 As you will be aware the Employment Allowance was introduced in 2014 and currently allows eligible employers to claim up to £3000 per year off their Employer’s NI contributions.

From April 2020, the rules regarding claiming the Employment Allowance are changing.  Employers will now only be able to claim in each year if their total secondary Class 1 NI liability (Employers’ NI) in the previous tax year was under £100,000.  There are also some administrative changes which all employers will need to consider.

Please see the links below, which you will need to refer to:



The two main administration changes are:


  • The Employment Allowance will now have to be claimed each year – relief will no longer be carried forward to the new tax year as it has been to date.
  • From April 2020, the Employment Allowance will be classed as “state aid” for which there are thresholds in place which may prevent you from claiming the full allowance.

Feb 2020 EMPLOYMENT ALLOWANCE CLAIM 2020 – form  In order to claim the Employment Allowance on your behalf, Just Simply Organised will need confirmation of your eligibility and would ask that you print and complete the form on this link, scan it and return it to us prior to the end of March 2020, as we will need this in place before we can process your first payroll in April 2020. We will not be able to claim the Employment Allowance in 2020-2021 without this statement.

You may need to refer to your accountants to check the position of any grants or loans that you already have in place to establish if they fall under de minimis state aid rules.

All content provided in this blog is for information purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.

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