Employment Allowance

When deciding if you are eligible for Employment Allowance, would you send the EPS to HMRC at the start of the new tax year, or wait until the first month the Employers NI is deducted to send the EPS saying we are allowed to claim Employment Allowance?

Anybody? HMRC??

You must submit an EPS every month even if the values are nil. Should you be entitled to Employment Allowance you will reduce your liability once it starts up to £5k https://www.gov.uk/claim-employment-allowance

Not what I was asking, but thank you. And as far as I am aware, you don't have to submit a nil EPS.

Hi,

To claim Employment Allowance you can send an EPS on the 6th of April, the first day of the tax year. You do not need to wait untill the first bill.

You do need to make sure that you can claim Employment Allowance. The credit for Employment Allowance will not be added to the PAYE account until the employers NIC bill is on the PAYE account.

Thank you.

That's great, thank you!

What if the circumstances change within the year, and before you have a bill? For example at the start of the tax year you have 2 employees, including a director who meets the criteria, but there won't be any ER NI deducted until month 9/10. You submit your EPS on 06 April stating that you will be entitled to Employment Allowance based on the information at that point. However, part way through the year, and before month 9/10, 1 employee resigns leaving only the director. No ER NI has been deducted at this point. Can you leave the Employment Allowance in place, or do we have to submit a new EPS removing the right to Employment Allowance?

Hi,

If at any point during the tax year you at eligible then you would send an EPS to state such. If this changes throughout the year you would still be eligible.

Thank you.

Thank you!