• Register
Return to: Home > News > ICAEW comments on employment allowance and state aid

ICAEW comments on employment allowance and state aid

The Institute of Chartered Accountants in England and Wales (ICAEW) has submitted its comments on the Employment Allowance eligibility reforms draft legislation and related documents.

“The administrative burden for smaller employers of ascertaining the state aid information to report on payroll submissions may be disproportionate to the value of the employment allowance claimable, which seems at variance with a policy intended to benefit such businesses,”said the ICAEW, adding that: “This seems at variance with a policy intended to support smaller businesses. We can only assume that state aid (StA) was not considered before the decision was made to restrict EA to smaller employers.”

The ICAEW believes that the proposal goes against Tenet Four of its Ten Tenets for a Better Tax System, which states ‘Easy to collect and to calculate: a person’s tax liability should be easy to calculate and straightforward and cheap to collect’.

Furthermore, to enable employers to comply, the ICAEW warns that ‘HMRC will need to publish detailed guidance in plain English, preferably all in one place, to explain how employers, and, where applicable, associated entities, should ascertain and calculate all the information that they will need to report in the employer payment summary (EPS). Official guidance currently available, for example State Aid: the Basics and The State Aid Manual, is written for public sector officials and assumes too much knowledge and contains too much jargon to provide meaningful guidance to the average SME employer and payroll agent’.

Top Content

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    FASB: a quest for simpler standards

    FASB chair Russell Golden addressed the IMA 2019 Annual Conference and Expo at the Sheraton San Diego Hotel and Marina, California, on 18 June. IMA immediate former chair-emeritus Alex Eng acted as moderator. Joe Pickard reports.

    read more

    The future of audit, and how to get there

    Two recent reports peer into the future of the audit profession. One analyses what an audit should offer, while the other looks at how the audit process will be carried out. Robin Amlôt takes a closer look at both.

    read more

    EFAA elects new president, focuses on digital future

    EFAA’s new president, Salvador Marin, outlined his key priorities for the next two years at the organisation’s 2019 annual general meeting, while outgoing president Bodo Richardt offered advice. Robin Amlôt reports.

    read more


    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.