Employment allowance for national insurance purposes

The allowance goes up from £2,000 to £3,000 from 6 April 2016. It is given as a deduction against the employer’s national insurance bill. However there is a snag. From 6 April 2016 if the only salary is paid to a single director the allowance is lost.

So it might well pay to employ another family member if the salary can be justified as an allowable business expense.