PAYE Employment Allowance

[worthywow]

Hi ! I've just received a PAYE underpayment letter from HMRC for years ending 2015 and 2016 - double checking my account on-line all the balances were £0 so I gave HMRC a call.

They said it was due to the employment allowance I used in those years no being allowable (I'm a single employer/director company).

I stopped claiming this from April 2016 when the rules changed https://www.gov.uk/government/public...es-in-the-year

HMRC said it wasn't allowable from 2014 but I can't see anywhere it says it was (or will be) applied retrospectively.

Has anyone else had similar issues/discussions with HMRC ?

Many thanks in advance !

[northernladuk]

How much were you paying yourself for those two years?

[craigy1874]

Were you IR35 for those years?

[northernladuk]

Were you IR35 for those years?

Eh?

[worthywow]

Thanks for getting back to me !

Re IR35 - for those years I was a contractor i.e. "passed" the employee test

In 2014-15 I paid myself £10027 and in 2015-16 £9849 alongside some dividend payments.

I'm also in the process of writing to HMRC to ask for details on where the charge came from so will report back when I hear from them !

Cheers,

Richard

[northernladuk]

Re IR35 - for those years I was a contractor i.e. "passed" the employee test

This makes even less sense than craigys reply

[craigy1874]

Eh?

I ask because HMRC do not believe that you can claim the employment allowance if you are IR35.

I disagree and have claimed it for my clients, but HMRC disagree.

Therefore, my question was relevant...

[craigy1874]

Thanks for getting back to me !

Re IR35 - for those years I was a contractor i.e. "passed" the employee test

In 2014-15 I paid myself £10027 and in 2015-16 £9849 alongside some dividend payments.

I'm also in the process of writing to HMRC to ask for details on where the charge came from so will report back when I hear from them !

Cheers,

Richard

Sounds to me like the claim wasn't made properly for the allowance.