Are you eligible to claim the employment allowance?

17th October 2018

The Employment Allowance reduces the amount of National Insurance employers have to pay by up to £3,000 per year.

By using the scheme, a company can write off the first £3,000 of its overall Employers’ NIC bill each year.

The Allowance itself is ‘claimed’ each month via your payroll process, as the liability arises. So, no Employers’ NICs are payable until your company’s entire £3,000 allowance has been used up.

If you haven’t claimed the employment allowance, you can make a claim up to 4 years after the end of the tax year in which the allowance applies.

Is your limited company eligible to claim the employment allowance?

for further information regarding the employment allowance please read our publication Employment allowance or contact our payroll expert Alec Marsh.