Autumn Budget 2018: Access to the employment allowance (EA) will be restricted to employers with a national insurance contributions (NICs) bill below £100,000 in the previous tax year, chancellor Philip Hammond revealed in the Autumn Budget 2018.
The EA allows employers to claim back class 1 NICs of up to £3,000 each year.
The restriction will be introduced from April 2020 to ensure the EA is targeted to support smaller employers, the government said.
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According to the treasury, more than 99% of micro-employers and 93% of small employers will still be eligible for the EA, based on HM Revenue and Customs analysis of real-time information data from 2017-18 and the Autumn Budget 2018 Office for Budget Responsibility forecast.
A spokesperson for accountancy organisation Mazars said: “While the removal of larger companies from the employment allowance increases the NICs burden, the process is simplified and the increase in NICs is relatively small.”