Are they entitled to £2000 Nic allowance?

Are they entitled to £2000 Nic allowance?

Didn't find your answer?

I have a dental laboratory who basically make false teeth etc. for various dentists.

Some dentists are private ... Some NHS .... Some a mixture...

No real way of splitting with any accuracy!

I have read guidance re £2000 employers NIC allowance and cannot decide if it means the business may fall under the exception category ( ie NHS)?

I have taken the view that his clients are dentists and therefore qualified?

Any input greatly received!!

Replies (5)

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By DMGbus
06th Jun 2014 08:49

My view is that the customers of the dental laboratory are dentists (rather than patients).

Providing supplies to a dentist I do not see as being a public sector supply.

I see the public sector supply being from the dentist, so it is the dentist that might not qualify for the EA (depends upon NHS/Private practice turnover split in my opinion).

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The triggle is a distant cousin of the squonk (pictured)
By Triggle
06th Jun 2014 10:56

Hi Mikeyban

I have no definitive answer about the EA but I agree with DMGbus that the supply is to the dentists, therefore, I would have thought EA would be claimable.

My question to you is that many moons ago (late 1980s) the firm I worked for used to act for a dental laboratory that produced false teeth by injection moulding. When the teeth came out of the mould they were rough and needed further work before delivery to the dentist for a "first fitting".

The lab used to have a teams of home-workers who used to take the false teeth home with them and then sit there of an evening filing the rough edges off the the teeth and then polishing them up while they were watching the TV. The weekly payroll I remember was a nightmare.

Just out of interest does your client still have these home workers or has the technology now moved on so that what is produced by the lab is now the finished artticle?

Just interested I suppose - got all nostalgic for a moment.

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By mikeyban
06th Jun 2014 18:04

Triggle
Thank you both for your responses....

I think the technology has moved on as all work done in lab now!

Have a great weekend!

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The triggle is a distant cousin of the squonk (pictured)
By Triggle
06th Jun 2014 18:21

Cheers Mikeyban

I thought it might have done. I was hoping for a second income!

Have a great weekend yourself.

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By Phani
16th Jun 2014 12:41

As per HMRC...

Hi Mikeyban, we had a similar situation and contacted HMRC to figure out whether or not our client is eligible for Employment Allowance.  HMRC's representative said the below:

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Is your client getting contracts through NHS? If yes, and if they also have private contracts, if the income from private is greater than or equal to 50% of income then they are eligible for employment allowance.

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I know it is difficult to decide, but this is what we got to hear from them...  hope this helps.

 

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