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Make the most of the enhanced employment allowance

By Sarah Laing, June 2020

Sarah Laing highlights three changes to the employment allowance (EA) of which employers need to be aware.

The employment allowance (EA) is a valuable relief, which currently benefits more than a million smaller businesses in the UK. Broadly, the relief works by allowing an employer to offset up to a pre-set annual threshold against their employer National Insurance contributions (NICs) liabilities.  

The allowance is claimed as part of the normal payroll process through real time information (RTI). Employers may generally claim the allowance if they are either a charity or a business (including a community amateur sports club) that pays employers’ Class 1 NICs on employees’ or directors’ earnings and is not funded by central government. This means that an academy, although funded by central government, qualifies for EA because it is a statutory charity. 

There are however, certain types of business that

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