The legislation http://www.legislation.gov.uk/ukpga/2014/7/section/3 for the NI allowance says that connected companies at the beginning of a tax year cannot claim multiple lots of the NI allowance. Does this mean if a director of a company sets up another company (with a genuine separate business) during the tax year that the new company can still claim the NI allowance in the tax year the company is set up?
I would have assumed not but I don't know why the legislation makes a point of stating the beginning of a tax year.
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I suppose connected companies at the beginning of the tax year might no longer be connected companies by the end of the tax year.
Bear in mind s. 2(4A) of NICA 2014 which denies employment allowance where the sole employee is a director/shareholder, which probably kills off what you had in mind?
As you correctly state, the legislation refers to companies that are connected at the start of the tax year. A company formed after the start of the tax year cannot be connected at the start of that tax year so could be entitled to the EA for the remaining part of that tax year, but may well then fail to be entitled for the following year(s).