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Employers NI Allowance

Eligibility

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we have a client that has changed entity in the year moving from unincorporated to incorporated, all staff have transfered under TUPE rules

the client has claimed the employer NI allowance for both entities. I know you can only claim the allowance for one entity if you have several businesses on the go at once, but I can't find any guidance on a change of entity, if anyone can point us in the right direction it would be appreciated

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By jcace
21st Aug 2019 22:30

You might find some pointers here:
https://www.gov.uk/government/publications/employment-allowance-more-det...

especially section 11

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By Duggimon
22nd Aug 2019 14:06

I can't remember the specifics of how it works right now but (I think) a brand new company is not connected to anyone until the end of the tax year in which it is set up.

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Replying to Duggimon:
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By jcace
22nd Aug 2019 15:25

The connected companies rule looks at connections at the start of the tax year, so if a new company is incorporated after that, it won't fall foul of the connected companies restriction in that year. However, I'm not so sure that it would avoid the business takeover restriction referred to in the guidance from my previous post.

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