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HMRC internal manual

National Insurance Manual

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Employment Allowance: Connected persons - Companies - Connection through a trustee

National Insurance Contributions Act 2014 - Schedule 1, Para 6, sub-paragraphs (1) to (3)

See NIM06590 before reading the contents of this page.

If, at the beginning of a tax year, two or more companies (which are not charities) are connected with one another, then only one of them may claim the Employment Allowance. It is up to those companies to decide which company will make the claim.

Connection through a trustee

Two companies (A) and (B) will be ‘connected’ to one another if they are under control* of the same person by virtue of rights or powers (or both) held in trust by that person, and there is no other connection* between (A) and (B).

In determining if companies (A) and (B) are connected with one another, the rights and powers that one company has over the other company are ignored.

For this purpose:

  • ‘control*’ has the same meaning as in Part 10 of CTA 2010 (see sections 450 to 451 of that Act)
  • ‘connection*’ includes a connection in the past as well as a connection in the present and the reference to a connection between (A) and (B) includes any dealing with them.