Employment Allowance – single director companies

My brother and I run a company together- we’re the only directors and shareholders. We don’t have any other staff members. We our company still be eligible for the Employment Allowance? 

1st April 2016

The Employment Allowance was introduced to incentivise employers. It is offset against the employer’s secondary National Insurance. Previously it has been £2,000 but from April 2016 the allowance rises to £3,000.

Unfortunately, another business type has been added to the list of those excluded from claiming the allowance. Limited companies with a single director, and no other employees, will not be able to benefit from the employment allowance from 6th April 2016.

As your company has two directors, you should be able to continue to claim the employment allowance.

If you’d like any support with looking after the affairs of your limited company, please contact your local TaxAssist Accountant. 

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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