The Employment Allowance (EA) allows eligible employers to reduce their annual National Insurance (NI) liability by up to £5,000.

Eligibility criteria include having one or more non-director employee(s) and the Employer NI contributions of £100,000 or less for the previous tax year.

If you have multiple companies in a group and the total Employer NI contributions for all group companies was over £100,000, unfortunately none of the companies within the group are eligible to make an EA claim.

You can only claim against your employers’ Class 1 NI liability up to a maximum of £5,000 for the 2023-24 tax year.

We will automatically apply for the EA at the start of the Tax year if we believe you are entitled to it.

If you believe you should be entitled to it, but we don’t appear to have claimed the EA on your behalf then please contact us to query it.

You can check if there is any employment allowance being claimed via your monthly P32.

For more information on eligibility, please click here or speak to us.