Are you making use of Employment Allowance?

Are you making use of Employment Allowance?

Eligible businesses can claim a maximum £3,000 per year against their employers’ class 1 National
Insurance liabilities. The allowance figure appears on your P32 reducing your employers’ NI liability.
Most businesses & charities can claim this allowance if they are paying employers’ class 1 NI.
The exceptions are:

  • The only employee paid above the secondary threshold is a director
  • The person employed is for personal, household or domestic work (i.e. a nanny or gardener)
    unless they are a care or support worker
  • A public body or business doing more than half your work in the public sector (i.e. local
    councils or NHS services) – unless you’re a charity
  • A service company working under IR35 rules and your only income is the earnings of the
    intermediary (such as your personal service company, limited company or partnership)

If you are part of a group only one company or charity within the group can claim the allowance.

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