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Employment allowance

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Information on employment allowance in Sage 50 Payroll and how it can benefit your business.


What is employment allowance?

It's a great 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 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 send a confirmation letter for your employment allowance. If your claim is rejected, you'll receive an automated message from HMRC within five working days.  

Claim the allowance in your software

Great news, it's really easy to apply for and claim this allowance in your software. Use our handy How to claim employment allowance guide to do this.

Is this the same as small employers' relief?

No, this benefit is different to small employers' relief, you may be eligible to claim this too. Use our helpful What is Small Employers' Relief (SER)? guide to find out more and check if you're eligible.


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