What is the Employment Allowance?
Definition of the Employment Allowance
The Employment Allowance is a reduction of up to £3,000 a year in employer's National Insurance (NI) for certain employers.
The Employment Allowance started on 6th April 2014. It is set against the employer's NI that would have been paid, up to £3,000 a year.
The Employment Allowance can't be used against PAYE or employee's NI unless an employer has overpaid employer’s NI as a result of not using the allowance.
Limited company directors who are the sole employee of their companies do not qualify for the Employment Allowance and certain other employers, such as those employing domestic workers and those whose staff carry out more than 50% of their work in the public sector (with certain exceptions), are not eligible.
Uh-oh, we're missing some cookies 🍪
We respect your cookie choices so we have only set cookies you agreed to on this website.
Normally you'd see some comments here but we need functional cookies to make that happen. Allowing those cookies would make the comments visible.
The choice is yours.