Employment Allowance

Payroll - Employment Allowance (EA)

HMRC allows a claim of up to £5,000 for most businesses to claim “EA” each Tax Year

This is offset against the Employer National Insurance

In order to be eligible any of the following must apply 👇

1. There are a minimum of 2 Directors working for the business and processed through the payroll ✅
2. There is a minimum of 1️⃣ employee on the payroll who is not a Director ☑️

The maximum claim is £5,000 is split across all of the Employees so it not £5,000 claim per employee per Tax Year

The purpose of such an allowance is to encourage businesses to employ more staff and with the minimum rate per hour being higher for full time staff then most likely Employer National Insurance, which, the Employer is liable at 13.8% above a certain threshold usually means higher burden/cost to employ

If you have any Payroll related queries or would like assistance with your businesses payroll, please reach out

The 👇 type of businesses can claim if hiring staff

• Sole trader 👨 👩
• Partnership 👬
• Limited company 👨‍💼

Tel: 01212852534

Web: www.secureaccountsltd.co.uk

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