Is the £2,000 employment allowance taxable? I have not seen or heard anything either way.
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What do you mean
You only receive the allowance if you are paying NIC so logic means that the expense is reduced therefore TAXABLE???
It is a reduction in the amount of employer's NI payable, which in normal circumstances is an allowable tax deduction. So if you like, all things being equal the taxable profits of businesses will increase by the amount of the reduction in their employer's NI payments, and so their tax liabilities will increase accordingly.
But that is an unusual way of looking at it. Did you think it might be the case that businesses could claim tax deductions for expenditure that they had not incurred? If you had a company that ceased to be liable to pay its PR company's fees because it took a decision to dispense with their services would you ask whether it would be able to continue to deduct notional PR agents' fees in the calculation of its tax liability?
Not a good comparison
The PAYE incentive was a payment receivable - not necessarily deducted from liability as if you had none they paid you - which was specifically granted as a non-taxable receipt.
John's point is correct - your expenses are reduced permanently - but only up to the level of your employer's liability so it cannot be looked on as income.