
Great news! Jaspreet Lally becomes the next Blu Sky team member to pass the ACA exams
We’re starting 2021 with some good news. Jaspreet Lally is…
For small employers, the news that the Employer’s National Insurance Allowance (“EA”) has been increased this year from £3,000 to £4,000 is good news… or is it?
Not necessarily so, because for some of you it may drop to nil. From 2020/21 the EA has been classed as de minimis state aid. Let’s understand what this means before diving into the world of many Blu Sky clients.
Very briefly, State aid can be in the form of grants, loans, and tax breaks. As the name implies, it’s aid from the state, so EU grants, for example Horizon2020 don’t count as state aid.
State aid can generally be grouped into two categories, de minimis and notified state aid. We’re concentrating on de minimis here.
You can (with a couple of market exceptions) receive up to €200,000 in de minimis aid in any rolling 3 year period. De minimis allows small amounts of aid to be given without the EU needing to be notified. If in receipt of de minimis you must keep records.
You must not breach this limit, if you do, the aid may be withdrawn.
Not if you’ve used a substantial portion elsewhere. SEIS is a case in point. Just raised £150,000 through SEIS? Got a couple of other de minimis grants? You will be dangerously close to the limit. Let’s not compromise your SEIS status!
The limit is in euros, so how do we know how close we are? You need to refer to Commission exchange rate applicable on the written date of offer of the de minimis funding. For SEIS that’ll be the date of share issue. We believe that will also be the case where an advance subscription agreement has been in place. The exchange rate calculator on a month by month basis is available here.
As an example, a £150k SEIS raise in January 2019 converts to €166,162 and the £4,000 EA allowance this month converts to €4,499, together they are getting very close to the limit.
For some the increase from £3,000 to £4,000 is good news however, for businesses with that have are close to de minimus limit – it may not be good news! If you’re unsure of this, or you want to help formalise your records and the relevant currency conversions, please speak to your Blu Sky Account Manager
We’re starting 2021 with some good news. Jaspreet Lally is…
It's nearly the end of 2020! We've been reflecting on this year and (since we are accountants!) it only seemed right to take a look at our year in numbers.
Please join us in welcoming Ryan to team Blu Sky!…