The draft Employment Allowance (Excluded Persons) Regulations 2020 have been laid before Parliament and are due to come into force on 6 April 2020. The regulations, will restrict the Employment Allowance (currently £3,000 per year) to those employers with a secondary Class 1 NIC's liability below £100,000 in the preceding tax year. The £100,000 limit will apply to the secondary Class 1 NIC's liabilities of individual businesses and, in cases where there are connected companies, the cumulative secondary Class 1 NIC's liabilities for all those companies.

From April 2020, the Employment Allowance will also be administered as de minimis state aid. This means that employers will need to confirm that they have space to accommodate the full £3,000 allowance within their relevant de minimis state aid threshold. In addition, the allowance will no longer be carried forward from one tax year to the next and employers will have to submit a fresh claim every year.

Source: New feed