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Big changes from April 2020 - Employer Allowance

Big changes from April 2020 - Employer Allowance

Published: 29/10/2019

What will change

The employer allowance will be introduced from April 2020, employers will only be eligible for the Employer Allowance if their total secondary Class 1 liability in the previous tax year was under £100,000.

What does this mean?


The change effectively removes the employment allowance for medium to large sized companies, with roughly 100,000 employers affected from the change.

Regardless of the size of your company, you can’t claim the employment allowance if:

  • You’re the director and the only employee that’s paid above the secondary threshold
  • You employ someone for personal, household or domestic work, unless they’re a care or support worker
  • You’re a public body or business doing more than half of your work in the public sector, unless you’re a charity
  • You’re a service company working under IR35 rules and your only income is the earnings of the intermediary

You don’t need to do anything just yet but for more information, or for help with your payroll please contact us on 020 8661 7878 or why not pop in for a meeting.