June 2nd, 2023.



In 2014, the government introduced the Employment Allowance to give small businesses some relief on staffing costs.

It can give your business a real boost if you’re trying to grow. We’ll be looking at what the Employment Allowance is and whether your firm is eligible.

What is Employment Allowance?
Note that the allowance is per business, not per employee.

Employment Allowance allows employers to reduce their National Insurance liability by up to £5,000 per tax year. This means you’ll pay less Employers’ Class 1 National Insurance each time you run your payroll or until the tax year ends, whichever comes first. You can only claim against class 1 National Insurance if your allowance is up to £5,000.

The good news is that you can claim if your liability was less than £5,000 last year. In fact, you can claim Employment Allowance for previous four years, dating back to the 2018/19 tax year, but maximum thresholds were lower than they are at the moment.

Employment Allowance was:


For the full story at smallbusiness.co.uk CLICK HERE.