Any past experiences in using 'Employers Allowance'?(Ltd Co)

[ask.tier1]

Hi,
I have recently started working through my own Ltd Company.

I understand from my accountant that, in the next financial year, my Ltd Company won’t have to pay any employer National Insurance contributions at all if NI liability is less than £2,000 a year.
(Reference - https://www.gov.uk/employment-allowance)

I have also read on the forum about UKBA asking for proof of NI contributions during ILR applications.

I have following queries in this regard -

1. Has anybody who applied for ILR has also claimed ‘Employment Allowance’ for their Ltd Company?

2. Assuming there are no issues in claiming ‘Employment Allowance’, what kind of supporting document, if any, is necessary at the time of ILR application?

Thanks in advance for looking into this query and sharing your experiences / guidance.

[harerama]

Hi ask-tier1,

I got Tier 1 (General) in august 2010 and worked as full time employee in companies till august 2012. All P60 and taxes were filled by employers for 2 years.

Then i started contracting via own limited companies from august 2012, until March 2014. I paid minimum PAYEE and no NI, good dividend, as suggested by accountant, However my Tax returns were filled correctly each year and i have tax returns, SA302 form, P60 etc for this duration.

Then i again joined permanent job in March-14 and i am applying for the ILR in august 2015 where are taxes are paid by my employer.

so in summary, I have 5 years full employment history, two years SA302 (august 2012- Mar 2014), P60s for 5 years.

Can you please suggested that missing NI of two years and low PaYEE can cause trouble to my ILR application?!!!

Any suggestion will be very helpfull. MAny thanks.

[mnaeem126]

Hi,
I have recently started working through my own Ltd Company.

I understand from my accountant that, in the next financial year, my Ltd Company won’t have to pay any employer National Insurance contributions at all if NI liability is less than £2,000 a year.
(Reference - https://www.gov.uk/employment-allowance)

I have also read on the forum about UKBA asking for proof of NI contributions during ILR applications.

I have following queries in this regard -

1. Has anybody who applied for ILR has also claimed ‘Employment Allowance’ for their Ltd Company?

2. Assuming there are no issues in claiming ‘Employment Allowance’, what kind of supporting document, if any, is necessary at the time of ILR application?

Thanks in advance for looking into this query and sharing your experiences / guidance.

I don't know about employment allowance but I know about Employer NI contribution for any salaried employee (that could be you yourself) and employer does not need to pay it if the total NI Contribution is less than £2000 a year. Your accountant is right but it is not from next year, even at the present the employer does not need to pay any Ni contributions if the NI contribution is less than 2000 a year.

[hellonewhere]

Hi,
I have recently started working through my own Ltd Company.

I understand from my accountant that, in the next financial year, my Ltd Company won’t have to pay any employer National Insurance contributions at all if NI liability is less than £2,000 a year.
(Reference - https://www.gov.uk/employment-allowance)

I have also read on the forum about UKBA asking for proof of NI contributions during ILR applications.

I have following queries in this regard -

1. Has anybody who applied for ILR has also claimed ‘Employment Allowance’ for their Ltd Company?

2. Assuming there are no issues in claiming ‘Employment Allowance’, what kind of supporting document, if any, is necessary at the time of ILR application?

Thanks in advance for looking into this query and sharing your experiences / guidance.

Your accountant is correct.
P60 demonstrating that the earnings were below the threshold and eligible for the employment allowance.

[hellonewhere]

Hi,
I have recently started working through my own Ltd Company.

I understand from my accountant that, in the next financial year, my Ltd Company won’t have to pay any employer National Insurance contributions at all if NI liability is less than £2,000 a year.
(Reference - https://www.gov.uk/employment-allowance)

I have also read on the forum about UKBA asking for proof of NI contributions during ILR applications.

I have following queries in this regard -

1. Has anybody who applied for ILR has also claimed ‘Employment Allowance’ for their Ltd Company?

2. Assuming there are no issues in claiming ‘Employment Allowance’, what kind of supporting document, if any, is necessary at the time of ILR application?

Thanks in advance for looking into this query and sharing your experiences / guidance.

I don't know about employment allowance but I know about Employer NI contribution for any salaried employee (that could be you yourself) and employer does not need to pay it if the total NI Contribution is less than £2000 a year. Your accountant is right but it is not from next year, even at the present the employer does not need to pay any Ni contributions if the NI contribution is less than 2000 a year.

Correct.