Business tax – policy paper

Employment Allowance: increase to £3,000

This tax information and impact note details the increase in Employment Allowance by £1,000 to £3,000 from April 2016.

Detail

The National Insurance contributions (NICs) Employment Allowance was introduced in April 2014, for the purpose of supporting businesses and charities in helping them to grow by cutting the cost of employment. Eligible employers can claim the allowance, which reduces their Employer NICs bill by up to £2,000 a year. This is an ongoing allowance. Once an employer has claimed the allowance, they will continue to enjoy it in future years, without needing to do anything further. Over a million employers have benefited from the allowance since its introduction.