Employment Allowance
Check if you're eligible
You can claim Employment Allowance for the current tax year if both of the following apply:
- you’re a business or public body
- you do less than half your work in the public sector (such as for local councils and NHS services)
If your company has only one director, they must not be the only employee liable for secondary Class 1 National Insurance.
You can also claim Employment Allowance if:
- you’re a charity (including community amateur sports clubs)
- you employ a care or support worker, for example, to care for someone with a mental or physical disability
From April 2025, Employers paying more than £100,000 in Class 1 National Insurance liabilities can apply for Employment Allowance. The rules are different if you claim for previous tax years.
Employees you cannot include in your claim
Certain employees cannot be included in your claim, such as:
-
someone whose earnings are within IR35 ‘off-payroll working rules’
-
someone you employ for personal, household or domestic work (like a nanny or gardener) - unless they’re a carer or support worker
If you’re part of a group
If you’re part of a group of charities or companies (also known as connected companies), only one company in the group can claim the allowance.
If you have more than one payroll
You can only claim Employment Allowance against one of the payrolls.