Autumn Budget 2018: Access to the employment allowance (EA) will be restricted to employers with a national insurance contributions (NICs) bill below £100,000 in the previous tax year, chancellor Philip Hammond revealed in the Autumn Budget 2018.
The EA allows employers to claim back class 1 NICs of up to £3,000 each year.
The restriction will be introduced from April 2020 to ensure the EA is targeted to support smaller employers, the government said.
According to the treasury, more than 99% of micro-employers and 93% of small employers will still be eligible for the EA, based on HM Revenue and Customs analysis of real-time information data from 2017-18 and the Autumn Budget 2018 Office for Budget Responsibility forecast.
A spokesperson for accountancy organisation Mazars said: “While the removal of larger companies from the employment allowance increases the NICs burden, the process is simplified and the increase in NICs is relatively small.”