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  • Government has published The draft Employment Allowance (Excluded Persons) Regulations 2019 restricting the Employment Allowance (“EA”) to the smallest employers
  • Legislation is out for consultation until 20 August 2019
  • Employers with a Class 1 NI liability of £100k or more in the preceding year will be ineligible for the EA
  • Restrictions to take effect from 6th April 2020
  • Final legislation to be published in October 2019


The Employment Allowance (Excluded Persons) Regulations 2019 will amend the National Insurance Contributions Act 2014. The Regulations will include new subsection 4B which will restrict the EA to companies whose Class 1 NI liability was below £100k in the previous year. Any companies which exceed these criteria will not be entitled. Subsection 4C and D set out the connected party provision in relation to the restriction.

Employers who are eligible to receive the Employment Allowance for a tax year must confirm whether the State aid rules apply to them

Where the State aid rules apply, the notice sets out a list of information which must be provided, including;

  • Trade sector
  • Where the employer has received State aid previously;
    • Total amount of de minimis State aid they have been allocated in the year of claim and in two tax years immediately prior to the year of EA claim – connected companies will have to state the amount of State aid receive over all companies

A declaration must also be made to HMRC to confirm continuing eligibility.

Call Originem: 0161 713 1730