UK EPS, Employment Allowance and the De-minimis State Aid field

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Last updated: May 07, 2020
2 min read

Eligibility for Employment Allowance has changed as of 6th April 2020

From April 6th 2020 there is new criteria to claim Employment allowance, which now must also be claimed each tax year. This was announced on the gov.uk site on 10th February 2020.

Further information was provided by HMRC in the Employer Bulletin: April 2020

As part of your Month 1 process you must now submit an EPS if you wish to claim the "Employment Allowance".

  1. Once you have completed all pay runs for the M1 tax period (pay dates of 6th April > 5th May inclusive) you should create the Employer Payment Summary and follow this guide.
  2. Upon initiating the EPS you will enter the record in "Edit Mode"

OK = Yes, Cancel = No

Please ensure you review all popups and treat "OK" as "Yes" and "Cancel" as "No"

If you are not eligible for the Employment Allowance you should select "No", save the record and submit as normal.

If you are eligible:

3. Select "yes"

4. A pop up will appear - review this and proceed accordingly.

5. Select the industry/ies (you can select more than one) that apply to you for de-minimis state aid categorisation.

"No State Aid" is only valid for certain industries, such as Charities, education etc.

This is from the Employer Bulletin: April 2020: 

Only choose ‘State aid rules do not apply’ on your EPS when your business does not undertake any economic activity. There are some employers, for instance, charities, community amateur sports clubs, employing someone to provide personal care, who may not be engaging in economic activity and therefore outside de minimis State aid rules. An example of this could be a small educational charity, employing staff to teach English as a second language for free in the local community. These employers are still eligible for the allowance, but it will not be classed as a de minimis State aid in these circumstances

6. Enter the amount of De-Minimis State Aid you have received in the last two tax years in Euros (see here for information on what exchange rate to use)

7. Save the record

8. Submit

9. Poll