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Consultation on employment allowance

02 July 2019 / Linda Pullan
Issue: 4702 / Categories: Comment & Analysis
Focus on eligibility

Key points

  • A technical consultation on changes to the employment allowance has been published.
  • New information requirements will take effect from April 2020.
  • Employers who receive state aid are affected.
  • Deadline for comments is 23 August.


An important consultation has been launched by HMRC. It is on the draft legislation regarding the new rules on claiming the employment allowance from April 2020 and closes on 23 August. See

Readers should take a look at this not because the new rules are necessarily complex but additional information must be reported to make a qualifying claim and this could prove to be a huge headache for agents running client payrolls.


The employment allowance was announced by the chancellor in the Budget in 2013. It allowed employers to offset up to £2 000 against their secondary National Insurance liability. Employers whose secondary National Insurance liability was less than £2 000 could claim only the lesser...

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