Early years providers remain in the dark about whether they can apply for the Employment Allowance, which reduces an employer's National Insurance liability, due to conflicting Government advice.
There is widespread confusion about whether PVI providers can claim the Employment Allowance, which is increasing from £5,000 to £10,500 in April, from HMRC due to guidance that states businesses are ineligible if they provide more than 50 per cent of ‘public work’ and receive more than 50 per cent of ‘public funding’.
It comes just months ahead of employer National Insurance contributions (NICs) increasing from 13.8 per cent to 15 per cent in April and the per-employee threshold at which employers start to pay National Insurance reducing from £9,100 to £5,000 per year. The National Minimum Wage is also rising.
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