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It’s good news for businesses, as the government’s Summer Budget revealed plans for an increase in the employment allowance from £2,000 to £3,000 a year as of April 2016.

who’s entitled to this?

All businesses, charities and community sport clubs will be affected by this employment allowance increase.

are there any exceptions?

You can’t claim employment allowance if:

  • you’re employing someone for personal work, such as a cleaner or a nanny
  • you’re a service company with only deemed payments of employment income
  • or if you’re a public body/business doing more than half your work in the public sector (e.g. local councils and NHS services).

what if I’m a director and sole employee of my company?

Another measure announced in the Summer Budget is that if you’re the director of a limited company, and the sole employee, you’ll no longer be entitled to employment allowance from April 2016.

If you’re wondering how these changes may affect you, call us today on 01782 279615 or contact us here.