You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.
The Employment Allowance (EA) is a £5,000 allowance set against employer National Insurance Contributions (NICs) and has to be claimed each tax year by qualifying employers.
The EA was increased from £4,000 to £5,000 this tax year to help to soften the blow of the 1.25% increase in employer contributions, now calculated at 15.05%.
If two or more companies or charities are connected with one another, then only one of them may claim the EA.
Employers are not eligible to claim the EA where their employers’ Class 1 National Insurance liabilities in the previous tax year exceeded £100,000.
Another important exclusion from the EA are single director companies where the director is the sole employee of the company.
06 May 2025
Sole traders and landlords with an income over £50,000 have been warned that there is less than a year before they will be required to use Making Tax Digital for Income Tax (MTD for IT).
The independent review into the loan charge has issued a call for evidence with examples of promotional material and marketing leaflets a priority for the review team.
Would you like to download our mobile app from the App Store?