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29 April 2014 / David Heaton
Issue: 4449 / Categories: Comment & Analysis , Business , Employees , Income Tax

Does the employment allowance pass the vital simplicity test?


  • Check the guidance about the employment allowance.
  • Class 1A and Class 1B National Insurance is not covered.
  • Connected companies must choose a nominated claimant.
  • Does a body have a statutory function of a public nature?

A letter from the prime minister is not something that an employer receives every day so was the recent one a spoof? No it was not but to avoid confusion it might have been better not to over-simplify the propaganda for the new employment allowance.

David Cameron reportedly wrote to tell some two million employers that “the new employment allowance could take £2 000 off” their employer National Insurance contributions.

He went on: “The allowance will cut up to £2 000 from your employer NICs bill” which is a simple enough message as far...

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