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Is this eligible for Employment Allowance

One Director company with apprentice

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An employer with one Director paid over the NI threshold, plus one other employee who is an apprentice under 25 but also paid over the NI threshold but pays no NI as an apprentice - does the employer get Employment Allowance?

I think they should get it as the guidance only refers to having one other employee paid over the secondary threshold, nothing to do with what NI letter they are on, am I correct?

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By Duggimon
21st Aug 2019 11:05

I'd agree with you, but would be wholly unsurprised to find out HMRC do not.

I'd claim it.

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By Payrollgal
21st Aug 2019 11:16

My understanding is that they just need to earn above the Secondary Threshold for NI.

I'd say claim it.

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By jcace
21st Aug 2019 13:20

The employer will be a secondary contributor, albeit at a rate of 0%. The legislation says as much: "For the purposes of this Act a person is still to be regarded as being liable to pay a secondary Class 1 contribution even if the amount of the contribution is £0 because this section applies to the earnings in question."

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