300,000 small companies to benefit

[payroll]

Reference: DWP Press Release

The good news for small companies who employ only the owner is that as from 28th February they will no longer have to purchase employers' liability compulsory insurance (ELCI).

Minister for Work Jane Kennedy said: "Hundreds of thousands of limited companies, where the owner is the sole employee, will benefit from the new rules. Removing the requirement to purchase ELCI could save companies hundreds of pounds each year."

It is estimated there are around 300,000 small companies that will be able to take advantage of the rule change, which was made following a wide-ranging consultation on whether to remove the requirement.

The Association of British Insurers has estimated an average annual saving for each company of around £250.

 

[MikeH]

That sounds like a sensible idea. I just hope that people remember to get the insurance if they employ that one person at a later date.

Mike.

 

[Eagle]

 
Sorry, but why would a business owner who doesn't employ anyone get Employer's Liability Insurance?

Are they nuts? :shock: :wink:

 

[Toon]

This would be another rule I was unaware of!

I own a limited company and at the moment there's only me who does all of the work. What else should I know?

 

[Ozzy]

Thats the point, under the new rules if you are a sole owner employee company you wont need to... because firstly a company owner cannot sue himself, and secondly you not likely to either!

 

[Alpha]

In answer to Eagles question

This was aimed at limited companies as they do 'employ' someone i.e. The Director(s).

As Ozzy says this part of the law was rediculous where the employee is also the only director/shareholder as they are hardly likely to sue themselves (although technically possible)