What is Employment Allowance? It's an employer benefit that helps you reduce your National Insurance liability by up to £5,000. Each time you run your payroll you pay less employers’ Class 1 National Insurance. This continues until the £5,000 has gone, 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, as this doesn't carry over between tax years.
Check you're eligible If you're not sure whether your business is eligible, you can check using HMRC's guidance. Check HMRC guidance now  NOTE: HMRC no longer sends a confirmation letter for your Employment Allowance. If they reject your claim, you'll receive an automated message from HMRC within 5 working days.
Claim the allowance in your software
Is this the same as small employers' relief? No, this benefit is different to small employers' relief (SER), you could be eligible to claim this too. Use our guide on what is Small Employers' Relief? to find out more and check if you're eligible.
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