Employment Allowance - single director companies

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 6^th 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. 

Date published 1 Apr 2016

This article is intended to inform rather than advise and is based on legislation and practice at the time. 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 article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.