As of the 6th April 2016 the employment allowance has increased to £3,000 per year. The eligibility parameters have also been updated which could lead to employers no longer being eligible to claim.

You cannot claim if:

  • you’re the director and only paid employee in your company
  • you employ someone for personal, household or domestic work (eg a nanny) – unless they’re a care or support worker
  • you’re a public body or business doing more than half your work in the public sector (eg local councils or NHS services) – unless you’re a charity
  • you’re a service company with only deemed payments of employment income under ‘IR35 rules’