NIM06560 - Employment Allowance: Who can鈥檛 claim the Employment Allowance? Claims made through connected businesses or charities
National Insurance Contributions Act 2014 - Section 3
If two or more companies are connected with one another, or two or more charities are connected with one another, then only one of those companies/charities may claim the Employment Allowance and they must decide which company/charity claims the allowance.
If a business controls a charity, they are not considered to be connected for the purpose of claiming the Employment Allowance. 皇冠体育apprefore, both the business and the charity can separately claim the Employment Allowance if they each employ persons and both incur employers secondary Class 1 NICS liabilities as a result.
However, the same does not apply if a charity controls a trading business, in which case both entities are considered to be connected for the purpose of claiming the Employment Allowance.
For this purpose:-
- 鈥淐ompany鈥� has the same meaning given by section 1121(1) of the Corporation tax Act 2010 (meaning of 鈥渃ompany鈥�) and includes a Limited Liability Partnership.
- 鈥淐harity鈥� has the same meaning as in the Small Charitable Donations Act 2012 (see sction 18(1) of that Act, subjet to paragraph 8(5) of Schedule 1 of the National Insurance Act 2014.