Employment Allowance Single Director Company

[Lsp54]

Hi,
A contractor employs his wife, paying her above the secondary threshold in the course of a tax year, but due to the nature of contract work wages are not paid every month, if between jobs. IR 35 rules do not apply. Is it permitted to claim the Employment Allowance if payroll payments are not made every month?
Thank you.

[robbob]

Is it permitted to claim the Employment Allowance if payroll payments are not made every month?

Yes you are fine as long as there has been at least one payment over the class1 National insurance secondary threshold (presumably year end return confirms ni is payable) . Note you need to be careful if the wife is a director and you use the mehod that has the end of year adjustment (ie if you have used the "standard for employees" per period method rather than directors cumulative allowance) - as in that circusmtance you could have an amount that is later reversed so will be deemded to have not existed (i presume)

[Lsp54]

Thanks very much for your reply. His wife is not a director.
Thank you.