There are a few organisations in the UK that will not qualify for the allowance.
You can’t claim if:
You employ someone for personal, household or domestic work (for example a nanny or gardener) - unless they’re a care or support worker
You’re a public body or business doing more than half your work in the public sector (for exmample local councils and NHS services) - unless you’re a charity
Groups of companies also have rules to consider, you will need to split the allowance between the companies within the group and similar rules will apply to 'associated businesses' this means companies under common control that are not grouped. This rule is designed to stop business setting up several new companies in a bid to try to take several 'employment allowances’!
Any unused employment allowance at the end of the tax year will be lost, with no option to carry it forward to a future tax year.
If you have not claimed your £2,000 for the 2015/2016 tax year please contact me by using the online contact me page which can be found here
April 2016 changes
The employment allowance rates will change from April 2016. Companies will have their PAYE bill cut by another £1,000 as the Employment Allowance rises from £2,000 to £3,000 per year.
This means, next year businesses will be able to employ 4 people full time on the National Living Wage and pay no National Insurance at all.