Agent Update 73

15 Aug 2019

CIOT agree that the draft legislation will result in employers with a Class 1 secondary National Insurance liability of £100,000 or more in the preceding tax year being ineligible for the Employment Allowance (EA) with effect from April 2020.

However, we have concerns with the information requirements for employers claiming the EA from April 2020, which arise from the EA being reclassified as EU State Aid. In particular, the information that will be required to be submitted through the PAYE system to certify that de minimis EU State Aid thresholds have not been exceeded in order to claim a maximum of £3,000 in EA will place an onerous burden on employers and some employers may decide the burden outweighs the benefit.

Our detailed comments can be found here and the draft legislation here.

Technical Team