apologies to all of you who already know this but I only just stumbled across it during a CPD webinar and thought I'd share.
If you have clients who run more than one business that employs people or own more than one company, you can only apply the employers allowance on one of those businesses/companies. I know I have several clients who have multiple businesses, obviously you want to apply it to the one where the benefit is biggest and may be worth talking to the client's accountant about this.
You can only claim the £2,000 Employment Allowance against one PAYE scheme - even if your business runs multiple schemes (also see the further guidance on claiming the Employment Allowance).
I assumed from that as long as each business could claim it unless they had more than one payroll (not sure why they would do that). I assumed that if a person has two separate companies that each could claim it. What I mean is that I assumed it was one claim per business and not one claim per person.
I just called HMRC on this. They lady I spoke to initially said that each company could claim the allowance. Then I asked her to check with a technical advisor just to be sure and the answer is that if one person has control of both companies they can only claim it once. Hmm. OK so how do I unclaim it for last month then?! A call to Moneysoft is upcoming!
What if two directors own one company, and one of them has another company - there is common control and association.. but I would have thought they each get the allowance surely?
Apparently the 'Associated Companies' rule for Corporation Tax is adopted for Employment Allowance Michelle, or at least that's what they said on the cpd event.
Princess, you said you don't know why this might happen.
I am not a payroll person and actually have very little intention of becoming one as it is getting far too complicated for me! However I have a client who does run 2 payrolls. Reason is QuickBooks!
QuickBooks enforced an update to 2014 on the desktop edition to those running payroll, this client had only recently upgraded to 2013 and was somewhat peeved so migrated to the cloud system which is how I got involved. Anyway long story short, the client has both weekly and monthly payroll, QBO allows one or the other - not both. The client now runs the weekly from QBO and uses the government software to run the monthly, entering a journal to QBO each month to bring the records up to date.
On the subject of the allowance she has opted to use that on the monthly payroll not the weekly which is hopefully correct.
I can understand that one. I have a client that has two shops one in one town and one in the next town. Each is a separate Ltd company with its own payroll. can he really only claim for one company? I don't think that's right. Each company is a separate legal entity so surely should get the allowance.
I have another client who has a Ltd company which he runs but he also runs another one from the same address with another director. they are not in the same business. can only one of those have the allowance?
Is every company entitled to it, or only those that have received a letter from HMRC saying they are? I run payroll for a company and they haven't received any information from HMRC about it, although they are aware of it. Can I tick the box on the payroll?
Is every company entitled to it, or only those that have received a letter from HMRC saying they are? I run payroll for a company and they haven't received any information from HMRC about it, although they are aware of it. Can I tick the box on the payroll?
Not every company is entitled to it. Some specific ones are not. I'd read the list ( a quick look at the HMRC page for Employment allowance should tell you the excluded ones) to confirm it is ok and then tick the box. But I don't think there is any letter sent out to say
1-you are entitled to it.
2-you're not getting it nah, nah, nah-nah, nah.
__________________
Never buy black socks from a normal shop. They shaft you every time.
Thanks - I only asked as I know other clients and friends companies that have received a letter saying they are entitled to it, but this particular client hasn't received that letter. I will check the list.
