From 6 April 2016, limited companies where the sole director is the only employee paid earnings above the Secondary Threshold (ST) for Class 1 NICs of £156 a week, are no longer able to claim the Employment Allowance of up to £3,000.
The company is no longer eligible for the allowance if:
- only one employee (or director) in the limited company is paid above the ST
- That employee is a director of the limited company.
Companies with several employees, where the director is the only employee paid above the ST, are no longer eligible for the Employment Allowance.