The employer’s class 1 NIC liability for the previous tax year must be less than £100,000
The business must not receive state aid in excess of its trade sector threshold, as the EA now counts as state aid.
As Kate Upcraft explained in March, the employer must complete new fields on the EPS to confirm requirements for condition 2) above. When HMRC receives the EA claim it will reply with a letter to confirm the EA is given as de-minimise state aid. Those letters have taken some time to arrive, but the employer doesn’t need to wait for this letter before starting to use the allowance.
When to claim
The maximum EA for 2020/21 was increased to £4,000, but this coincided with the introduction of the furlough scheme and the CJRS grants.
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