Employment Allowance

HMRC have introduced the ‘Employment Allowance’ which will reduce Employers Class 1 National Insurance Contributions by up to £2,000 each year.

The Employment Allowance is not available for:

  • anyone who employs someone for personal, household or domestic affairs
  • public authorities
  • employers who carry out functions either wholly or mainly of a public nature, unless they have charitable status
  • employers already claiming through a connected business or charity – the definition used is ‘If a company has control of another company, or both companies are under the control of the same person or persons, for example; companies linked in a group, these companies are connected.’

Detailed guidance on eligibility can be found at www.hmrc.gov.uk/nicsemploymentallowance