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Employment Allowance-two claims possible?

Two partners in a business also jointly own Ltd Company, can both claim Employment Allowance?

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Two Partners in a catering business also jointly own a Limited Company operating a similar business. The partnership has employed staff for many years and claimed Employment Allowance. Limited Company now employed staff for 2 years so feel should also be able to claim Employment Allowance but external Payroll Manager states not possible as both businesses under common control. Our view is that both businesses are seperate legal entities so should be able to claim. Any guidance would be appreciated

 

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Psycho
By Wilson Philips
10th Jul 2020 23:20

With the caveat that HMRC guidance is not always correct it does suggest that each business in this case would be entitled to the Allowance.

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By Wanderer
11th Jul 2020 02:20

MADEIRAHOUSE wrote:

Our view is that both businesses are seperate legal entities so should be able to claim. Any guidance would be appreciated

Separate legal entities is certainly not the test.
Look at connected companies / charities Section 3 National Insurance Contributions Act 2014.
http://www.legislation.gov.uk/ukpga/2014/7/section/3/enacted
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Replying to Wanderer:
blue sheep
By NH
11th Jul 2020 08:39

and just to add to that here is the schedule in case you cannot find it http://www.legislation.gov.uk/ukpga/2014/7/schedule/1/enacted

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Replying to Wanderer:
Psycho
By Wilson Philips
11th Jul 2020 08:49

The point being that the tests do not apply - it would appear - to unincorporated entities. So it is not quite correct to say that the legal status of the entity doesn’t matter.

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Replying to Wilson Philips:
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By Wanderer
11th Jul 2020 10:07

Wilson Philips wrote:

So it is not quite correct to say that the legal status of the entity doesn’t matter.

Is that directed at me? If so my comment is 100% correct. The test is NOT 'are these separate legal entities' as the OP opined. The test is 'are these connected companies / charities' as defined.
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Replying to Wanderer:
Psycho
By Wilson Philips
11th Jul 2020 10:37

You are correct - it was a lazy misconstruction of your words.

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Replying to Wilson Philips:
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By MADEIRAHOUSE
12th Jul 2020 22:03

Very much appreciate your comments here, but remain a little confused. Having regard to the facts as I presented do you feel both entities can claim for Employment Allowance or not? Really appreciate your guidance before deciding whether to make the plunge?

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Replying to MADEIRAHOUSE:
Psycho
By Wilson Philips
12th Jul 2020 22:22

Yes I do.

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Replying to Wilson Philips:
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By Wanderer
12th Jul 2020 22:38

Concur.

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