Employment Allowance related companies

Employment Allowance related companies

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I look after the payroll for a golf club which is operated via 2 limited companies.  One company rents the course from the landlord, receives subscriptions and greenfees etc and also employs greenkeeping staff to maintain the course.

This company owns 100% of the shareholding of a second company which looks after the clubhouse and the catering side of things.  It has a separate PAYE  scheme and employs completely separate members of staff such as chefs, bar manager etc It pays a monthly rent to company 1..

Do both companies get a full EA?

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By User deleted
17th Apr 2014 17:35

No ...

... they have to allocate it between themselves on an agreed basis.

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Euan's picture
By Euan MacLennan
17th Apr 2014 17:38

Only one Employment Allowance

The two companies are connected in accordance with NICA 2014 Sch.1 Para.2(1)(a) and so, only one can claim the EA in accordance with s.3 NICA 2014.

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By User deleted
17th Apr 2014 19:27

I'm going by the fact ....

... Earnie doesn't just have a tick box to claim it, but you can set the amount too!

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By bendybod
22nd Apr 2014 16:30

One company claims

Assuming that both companies pay more than £2,000 in Employers NI, you need to allocate one to receive the allowance.  If by the end of the year one hasn't used the entire allowance then I believe there is the possibility of allocating the remainder to the other company assuming it too has Employers NI contributions.

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By User deleted
22nd Apr 2014 16:40

Ah, that makes sense ...

... although as associated companies are determined in the same way as for CT, it would make more sense to allocate a proporton based on the number of associated companies in the same way as CT: but then again when did government think anything through properly - RTI and AE have high-lighted that failing.

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