11/09/2019 - Avanti
New draft legislation has recently been published and will come into effect from April 2020. The new restrictions announced by the Government will apply to the National insurance Employment Allowance (EA). Avanti Group breakdown the new legislation and discuss what it means for you.
In the draft legislation, HMRC outlines the policy objective;
“This reform is designed to focus the Employment Allowance at the original intended beneficiaries: smaller businesses. That is why the relief is being removed from larger employers who incur employer secondary Class 1 NICs liabilities of £100,000 or more in the tax year immediately before the year of claim. “
2020 will see general changes to the way EA works as well as some businesses losing their entitlement to a deduction from their Class 1 NI bill which is currently worth £3,000 per year.
It is worth noting that ALL employers will be affected, to varying degrees.
From the 6th April 2020, the changes are as follows;
HMRC anticipate that the measures will have a significant impact on approx 1.2 million businesses. Whether it be a direct financial impact due to eligibility, or understanding the legislation and its impact on business owners.
If you need help understanding the draft legislation, your eligibility and the potential impact for your business, don’t leave it until April. Contact Avanti (08000) 388 799 to get the right support in place. The Payroll team at Avanti are ready to help you.