You could get up to £3,000 a year off your National Insurance bill if you’re an employer.
What you’ll get
The allowance will reduce your employers’ (secondary) Class 1 National Insurance each time you run your payroll until the £3,000 has gone or the tax year ends (whichever is sooner).
You can only claim against Class 1 National Insurance you’ve paid, up to a maximum of £3,000 each tax year. You can still claim the allowance if you pay less than £3,000 a year.
You can claim Employment Allowance if you’re a business or charity (including community amateur sports clubs) paying employers’ Class 1 National Insurance.
You can also claim if you employ a care or support worker.
If you have more than one employer PAYE reference, you can only claim Employment Allowance against one of them.
If you’re part of a group, only one company or charity in the group can claim the allowance.
You can’t claim if:
- you’re the director and the only paid employee in your company
- you employ someone for personal, household or domestic work (eg a nanny or gardener) – unless they’re a care or support worker
- you’re a public body or business doing more than half your work in the public sector (eg local councils and NHS services) – unless you’re a charity
- you’re a service company working under ‘IR35 rules’ and your only income is the earnings of the intermediary (eg your personal service company, limited company or partnership)