Employment Allowance is an amount that eligible employers can deduct from their annual employer National Insurance liability. It reduces the cost of employing staff for many small and medium-sized businesses.
Eligibility restrictions
Not every business qualifies, and companies where a director is the only employee, or those with a very high prior-year National Insurance bill, may be excluded. Claims are made through payroll software.
Tax rules depend on individual circumstances and can change. This glossary is general information rather than personalised tax advice.