Consultation on draft Regulations to exclude employers that employ illegal workers from employment allowance

Close date: 3 January 2017

The Government consults on draft Regulations to exclude employers that have received a civil penalty for employing illegal workers from receiving employment allowance for a period of one year, with the aim of improving the operation of the employment allowance to meet its objective of supporting legitimate employment. The employment allowance, which was introduced in the National Insurance Contributions Act 2014, entitles eligible employers to offset their liability for employer Class 1 national insurance by up to £3,000 per tax year. The draft Regulations come into force on 6th April 2017 and the proposed exclusion will come into effect for the tax year 2018/19.
Consultation document: Technical consultation on restricting employment allowance from employers of illegal workers