National Insurance Employment Allowance

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’.

Employment Allowance allows eligible employers to reduce their annual National Insurance liability by up to £10,500.

You’ll pay less employers’ Class 1 National Insurance each time you run your payroll until the £10,500 has gone or the tax year ends (whichever is sooner).

You can only claim against your employers’ Class 1 National Insurance liability up to a maximum of £10,500 each tax year. You can still claim the allowance if your liability was less than £10,500 a year.