Employer NI for only one employee company

Employment allowance for one employee ( who is not director) company

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Dear All,

Can we claim employer allowance for one employee company who is not a director. The director is not paid from the company.

Appreciate if any one can advise on this.

Thanks in advance.

Replies (3)

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By Duggimon
26th Apr 2017 15:06

Maybe, depends what the company does. The fact there is only one employee does not stop you though.

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By craigprickett
27th Apr 2017 10:17

Assuming that the the type of company does not disallow it from claiming the employment allowance (eg, public body), and assuming that the employee earns above the secondary threshold for NI (I'm sure they do if you are looking at employment allowance), then yes this company can claim the employment allowance.

However, you mentioned that the director is not paid from this company. If they are paid from a connected company, then only one of the connected companies may claim the employment allowance. See:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/fil...

There is an example from HMRC in the following link that is somewhat relevant:
https://www.gov.uk/government/publications/employment-allowance-more-det...
(scroll right to the end, second example from the bottom)

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RLI
By lionofludesch
26th Apr 2017 16:40

Employment Allowance is not barred by just having one non-director employee.

But, as stated above, there may be other reasons.

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