DANSP25975 - Employment Allowance
Section 8(1) (ea) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (The Transfer Act)
Section 1 of the National Insurance Contributions Act 2014 provides for a deduction of up to £4,000 of an employer’s Class 1 secondary National Insurance contributions. That deduction is known as the Employment Allowance.
Entitlement decisions
Section 8(1) (ea) of The Transfer Act allows an officer of the Board to make a decision as to:
- whether a person is or was entitled to the Employment Allowance and if so the amount the person was entitled to
- whether a person is or was entitled to a repayment of the Employment Allowance and if so the amount the person was entitled to.
Such decisions may be required where:
- a person considers that they are entitled to the Employment Allowance but HMRC considers that they are not
- HMRC discovers that a person is claiming the Employment Allowance in circumstances in which they should not
This could be for a number of reasons, for example, because:
- one of the exceptions applies in section 2 of the National insurance Contributions Act 2014
- more than one company or charity within a group of connected companies or charities is claiming the Employment Allowance
- more than the permitted amount is being claimed, for example, because a person is claiming the Employment Allowance on more than one of their PAYE scheme references.
Wording of decisions
For the wording of such decisions, see DANSP35410.