HMRC is consulting on draft legislation to limit the number of businesses claiming Employment Allowance to those with an employer's class 1 NIC liability of less than £100,000 in the previous tax year.
Employment Allowance reduces the secondary class 1 NIC liability for most employers by up to £3,000 per tax year.
From April 2020 the Allowance will be administered as State Aid, so to claim the full amount employers will also need to check they are within the de minimis threshold.
HMRC has said it wants to focus the Allowance "at the original intended beneficiaries: small businesses".
A final version of The Employment Allowance (Excluded Persons) Regulations 2019 is expected to be published in October 2019, taking effect from 5 April 2020.
Full details of the consultation available here.
If you are concerned about the reforms, contact us today.