Employment Allowance: Companies connected through substantial commercial interdependence
National Insurance Contributions Act 2014 - Section 3 & Schedule 1 Para 3, sub-paragraphs (4), (5) and (6)
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For the purpose of claiming the Employment Allowance, two companies will be “connected” with one another if the relationship between them is one of substantial commercial interdependence. To determine where this applies, HMRC will take into account the degree to which the companies are financially, economically and organisationally interdependent, as explained below.
Two companies will be financially interdependent if (in particular), one company provided financial support (directly or indirectly) to the other, or each company has (directly or indirectly) a financial interest in the other’s activities.
Two companies will be economically interdependent if (in particular), they seek to realise the same economic objective, the activities of one benefit the other, or their activities involve common customers.
Two companies will be organisationally interdependent if (in particular) they have common management, common employees, common premises or common equipment.