Having produced a set of accounts with a period falling after 31st March 2014, a company is in receipt of a proportional amount of the Employment Allowance has been offset against the Employers NIC Contributions.
Tax Free you think?
Well it appears not!
Looking at all the HMRC online guidance and several calls to them, we have been informed that it is actually taxable. So just when you think you are being given up to £2,000 to help employ people you’re actually going to be taxed on it!
Needless to say I will be writing the Chancellor for clarification!