If an employer claims employment allowance, as they are qualified to do, but during the tax year they cease to qualify as there is only one employee earning, can the business carry on claiming the employment allowance for the rest of the year? Does it also need to pay back the employment allowance of the previous months if it does not qualify? 

Arthur replies: 

See HMRC’s National Insurance Manual at NIM06545, where it states (seventh bullet point):  ‘If the [second] employee leaves the employment before the tax year has ended and before the company has used up all of the Employment Allowance for that tax year, then the company may continue to claim the Employment Allowance to be set against any secondary class 1 NICs liabilities arising on the director’s earnings (up until when the allowance has been exhausted, or the tax year has ended - whichever is sooner).’ So there is no need to pay back the employment allowance of the previous months.