Share this content

Employers NIC Allowance for 2 Companies

50% Shareholder in both Companies - can both Companies claim the Employers NIC allowance

Didn't find your answer?

Director and 50% shareholder with his wife and other employees in Company A.

Also a Director and 50% shareholder in Company B - other shareholder is unconnected but they have other employees.

Can Company A & B both claim the Employers NIC Allowance?




Replies (2)

Please login or register to join the discussion.

By Matrix
05th Apr 2017 17:50

You will need to look at s450 CTA 2010 for the definition of control to see if they are connected companies for the purposes of the employment allowance (since he does not own >50% then it looks as if he does not control either).

Even if he did control both companies but there is no interdependence (separate employees, premises etc) then both companies should be able to claim.

Thanks (0)
Euan's picture
By Euan MacLennan
06th Apr 2017 10:55

I agree.

The relevant legislation on the Employment Allowance is set out in NICA 2014 Sch.1. Para. 3 overrides the basic rule in Para. 2 about companies being connected if there is common control. If your Company A & B avoid being caught by any of the interdependence rules set out in Para.3 (3),(4) & (5), both can claim the EA.

Thanks (0)
Share this content