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Employment Allowance

claiming employment allowance from start of tax year

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Does anyone know of a reason (except for client choice) why employment allowance shouldn't be claimed from the start of this new tax year?  I'm thinking of the way some of us were nearly caught out last year by claiming employment allowance too soon, when it could have been deferred, affecting those claiming NI under CJRS.  I know NI can no longer be claimed under CJRS, but anything else in the pipeline you are aware of before we press the button?

Many thanks

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A Putey FACA
By Arthur Putey
07th Apr 2021 16:17

When e/er NI was part of CJRS you were supposed to reduce the claim if it was covered by EA. The apparent loophole was to delay claiming ER until later in the year when the furlough scheme should have ended. I doubt CJRS will ever be extended to cover NI again, but who knows. But I wouldn't regard not taking advantage of a loophole as being "caught out".

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By Hugo Fair
07th Apr 2021 16:56

The only honest answer is the one that used to be entered on a Helpline log ... FIIK.

The fundamental problem is that new schemes (e.g. CJRS) keep being created that are monthly in nature, whereas the EA is a cumulative annual scheme - so the two don't mix easily.

There is nothing currently known that would cause the same problem as last year, but there is potential (in a much scarcer number of cases) for similar conflict under the new "NICs relief for employers who hire veterans" scheme that came into effect yesterday.

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