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NIC - Employment Allowance for a CIO

We have a CIO with one paid employee who is a trustee. Is Employment Allowance available?

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Employment Allowance is not available for a company with only one employee paid above the seconday threshold if that employee is a director. HMRC have told my charity client (a CIO, not a limited company) that it is not eligible for the allowance. I am not convinced, either that a CIO is a 'corporate body' for the purposes of this legislation; or that a trustee is a 'director' for this purpose.

Has anybody else met this issue?

Before somebody raises the point, the salary is paid to the trustee for a full-time job, not for being a trustee. This was cleared with the Charity Commission when the CIO was formed.

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By lionofludesch
09th Jun 2020 17:11

I agree with HMRC.

A CIO is a corporate body and your trustee is a "director-by-whatever-name-called".

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