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Post Info TOPIC: Employers NI Allowance


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Employers NI Allowance
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Hi there

Currently running payroll for a small company, two directors but only one is paid, approx £25,000.00 pa.

Under the current rules I cannot claim Employers NI Allowance, but if we were to pay the second Director a nominal amount, say £50.00 per month, would it then be claimable?

Thanks

 

Chris



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Master Book-keeper

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No

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position

JRA


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I thought you could if one or more was paid above the NI limit. I'm sure I heard that on a HMRC webinar earlier this week

 



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www.juderoseaccountancy.com



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I thought it had to be more than just a sole director, I haven't seen anything about minimum wages, though obviously it has to be enough to hit employers ni originally

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Guru

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No unfortunately the directors do not qualify.

 

 



-- Edited by abacus12345 on Friday 21st of April 2017 08:53:26 PM

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Senior Member

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Ive just found this, my original idea wouldnt work though, not sure if it has changed for this year...

www.att.org.uk/employers/welcome-employer-focus/changes-employment-allowance

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Guru

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No, if one is paid below, the directors will still not qualify. That's my interpretation.

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Johnny  - Owner of an overly-active keyboard. 

A man who can read, yet doesn't, is in no way wiser than a man who can't.

 

JRA


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Below is a link to the webinar I listened to earlier this week.

 

Scroll down for

Recordings

     Agent Services - 29th March 2017.

 

https://www.gov.uk/government/news/webinars-e-learning-and-videos-if-youre-a-tax-agent-or-adviser

 

I'm sure they mentioned it. I have left my notes in work so can't tell you how far through



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Master Book-keeper

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Hi Chris

The HMRC guidance is that if there is only one director above the secondary threshold, employers allowance can't be claimed.  If another director also earns more than £8112 then the allowance can be claimed.

https://www.gov.uk/government/publications/employment-allowance-more-detailed-guidance/single-director-companies-and-employment-allowance-further-employer-guidance

If an employee is paid above the secondary threshold, even if it's only for one pay period, then employment allowance can be claimed.

 

(HMRC legislation may not agree with HMRC guidance in this case but has yet to be tested at a tribunal)



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 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Master Book-keeper

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Sorry for the one word answer. I pressed submit before I had finished typing and then couldnt get back on the old t'interweb! Anyway John has provided a link and as he says, the law differs from the HMRC interpretation of the guidance but its not been tested yet!

I cant seem to open the agent thingy - its saying my adobe needs updating so might try to take a look later, although Ive heard some wrong info given out in some webinars so be wary. Anyone else managed to listen that can advise how far in the comments were - interested to hear it!

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position

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