On 6th April 2016 one person (director) companies ceased to qualify for the employment allowance (EA).
So you’re now thinking I will add my spouse or partner to the payroll and pay them a token salary each month.
However, in HMRC’s Employer Bulletin in February 2016 it says “we will keep you informed through the Employer Bulletin on what you need to do to make sure your company complies with this change.”
So reading between the lines we can expect some last minute announcements/updates that will tighten the new rule.
So you have a couple of options available:
- Risk it and hope they don’t make any changes.
- Don’t add your partner and only token £8,060 a year as a salary for yourself.
- Add your spouse or partner (so long as they are undertaking work for the company) and pay them above the NI primary threshold of £156 per week.