Employment Allowance
Description

With Employment Allowance, each time you run your payroll you pay less employer's Class 1 NI.

This continues until you've used the full allowance for the tax year or the tax year ends, whichever is sooner.

CAUTION:

If you claim Employment Allowance, you must apply again at the start of each tax year. It doesn't carry over between tax years automatically.


Claim the allowance in your software

The Employment Allowance checkbox in your company settings is only available to select after you submit your application to HMRC.

TIP:

After you apply, your software makes the Employment Allowance checkbox available for you to use automatically.

Continue to check you're eligible below for your next steps.

Check you're eligible

If you're not sure whether your business is eligible, go to Gov.UK to check HMRC's guidance.

Where you're already sure your business is eligible, continue to submit your application below.

Submit your application

When you're ready to apply, follow our article to apply for and enable Employment Allowance.

Generic illustration for the subject.

Free webinar

Recorded on 1 April 2026

Watch our Employment allowance webinar on how to check your eligibility and submit your claim.

Duration - 33 mins

Watch now

Further information

Find useful information and the answers to a range of common questions in our Employment Allowance FAQ article.


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