National Insurance Employment Allowance (Free)

What is the incentive/subsidy on offer?

This scheme provides a reduction in the amount of National Insurance employers must pay when they employ someone. Employers can reduce the amount of National Insurance contributions (NICs) they pay for their employees by up to £3,000. This is called the ‘Employment Allowance’.

How much is the incentive/subsidy?

Up to a maximum of £3,000 per year can be claimed through your PAYE system.

Restrictions

There are a small number of businesses who might not be eligible to claim this subsidy.  Public sector organisations such as NHS, District Councils and Prison Services are not eligible.  Please check the website below for details.

What could it do for your business?

This new subsidy (introduced in April 2014) will reduce the costs that are normally incurred because you employ someone. Up to 1.25 million businesses and charities will benefit from Employment Allowance. Around 450,000 businesses and charities won’t have to pay any employer National Insurance contributions at all.

Who runs it?

HMRC

Contact Information:

Telephone numbers:
HMRC Employer Helpline 0300 200 3200

Website:
https://www.gov.uk/claim-employment-allowance