Employment Allowance allows eligible employers to reduce their annual Class 1 Employers National Insurance liability by up to £5,000 in any tax year.
Your employers’ Class 1 National Insurance liabilities must have been less than £100,000 in the previous tax year.
If you missed claims for previous years you can claim back to 2018/19.
If you’re part of a group of charities or companies , the total employers’ Class 1 National Insurance liabilities for the group must be less than £100,000 and only one company in the group can claim the allowance.
You cannot claim
- if you’re a public body or business doing more than half your work in the public sector (such as local councils and NHS services) unless you’re a charity.
- If you’re a company with only one employee paid above the Class 1 National Insurance secondary threshold and the employee is also a director of the company
You need to claim Employment Allowance every tax year.
Registered charities can claim the Employment Allowance, even if they are wholly or mainly carrying out functions of a public nature. This is subject to the connected rules for charities.