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4806. Changes to Employment Allowance in the 2020/21 tax year?

From April 2020, employers with a Class 1 secondary National Insurance liability of £100,000 or more in the preceding tax year are no longer eligible for Employment Allowance. Class 1 secondary National Insurance means Employer’s NI.

Additionally, from 2020/21 Employment allowance will be given as de minimis State Aid. Therefore, the Employment Allowance application will need take account of the rules on de minimis State Aid, if said rules apply to your business.

Therefore, from 6 April 2020 onwards, employers must make extra checks to work out whether they are eligible, and submit a new claim for the Employment Allowance each tax year, as claims will not automatically renew each tax year.

More information regarding changes to the rules and extra checks you’ll need to make to see if you can still claim can be found on the link below: