What is the Employment Allowance and can my small business claim it?
Someone mentioned I could reduce my employer National Insurance bill — is this something my limited company qualifies for?
Asked by Anonymous on 21 May 2026
1 Answer
The Employment Allowance lets eligible employers reduce their employer Class 1 National Insurance bill by a set amount each tax year, and it was increased to £10,500 from April 2025 with the previous £100,000 NI liability cap removed, opening it up to more employers. The main exclusion to watch for is single-director companies where the director is the only employee paid above the secondary threshold — they typically can't claim it. You claim it through your payroll software by submitting an Employer Payment Summary (EPS), and an accountant can confirm quickly whether your business qualifies.