- you are a business or charity (including Community Amateur Sports Clubs) that pays employer Class 1 NICs on your employees’ or directors’ earnings;
- your company belongs to a group of companies or your charity is part of a charities structure.
With employment being one of the largest costs for businesses, this allowance will assist many small businesses with a genuine cash advantage in what are still difficult times in the business world. Further tax advantages can also be gained by increasing the basic salary that many business owners are paid by their companies. In the past annual remuneration of between £7,500 and £8,000 has been of benefit. However, with the introduction of the employment allowance an increase to £10,000 will bring further overall savings.
In summary, I would recommend that you claim the allowance while you can. If you would like to discuss the advantages further to both you and your business, or just talk through the logistics, then contact me or any of our partners, who will be glad to help.