As mentioned in a previous blog, there are a few changes to the Employment Allowance this year (2016/17), that you need to take note of:
- The allowance has increased from £2,000 to £3,000
- Eligibility – one of the main changes is if you are the directors and only paid employee, you are no longer eligibility
So what does this mean if you are a sole director and the only paid employee?
Simply put, you are no longer entitled to receive the allowance and this in turn will effect what is the most tax-efficient way to pay yourself – see our post on As a director what should I pay myself in 2016-17?