sick pay and employment allowance

Sykes66 Registered Posts: 14 New contributor 🐸
I have a situation where a director and his wife are paid 150 per week and do not pay any paye/nic. (Nic has been paid to date in stamps over the years and has been paid in full)
They submit an annual return through baisc paye tools.
They are both ill at the moment and need to claim ssp. They have been told they can't do this as the employment allowance covers this type of payment and should be suffered by the company. That haven't claimed employment allowance as they are under the limits.
The company doesn't make much money and as they are both sick I don't know what to advise.
Does any body know anything about this type of situation and if so could you refer me to some literature.
Also could the 2000 allowance be paid to the company if they haven't paid any Nic?


  • violeta
    violeta Registered Posts: 33 Regular contributor ⭐
    edited May 2016
    Employment allowance is claimed by taking it every month from NI amount. If they haven't paid any NI then there was nothing to be taken off. It is not something that the company gets as a refund if they haven't claimed it.
    It is only a way of help to small businesses to reduce NI costs.

    Hope this helps.
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