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Tax ReliefUK-wide

Employment Allowance

HM Revenue & Customs

Description

Cuts up to £10,500 a year off an eligible small employer's Class 1 National Insurance bill, claimed automatically through payroll software rather than as a separate application. The allowance was increased from £5,000 in April 2025, and the previous £100,000 prior-year employer NI eligibility cap that shut out slightly larger employers was removed at the same time.

Amount

Up to £10,500 off employer National Insurance per year

Deadline

Rolling / no fixed deadline

Eligibility summary

  • Available across the whole UK (England, Scotland, Wales, and Northern Ireland).
  • Applicant must be a registered business.
Notes
Increased from £5,000 to £10,500 from April 2025; the previous £100,000 prior-year employer NIC eligibility cap was also removed at the same time. Both changes confirmed still in force as of August 2026.

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How to apply

Claim via your payroll software or HMRC's Basic PAYE Tools when submitting an Employer Payment Summary (EPS).

View official source

Last verified: 23 August 2026. See the footer disclaimer — this is general information, not financial or tax advice.