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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 Jul 2026
More than 110,000 unrepresented taxpayers who must register for Making Tax Digital (MTD) from April 2026 have still not done so, according to the Low Incomes Tax Reform Group (LITRG).
Government plans to extend the rules requiring some taxpayers to declare 'uncertain' tax positions risk creating more uncertainty, compliance burdens and tax disputes according to the CIOT.
We are delighted to share some exciting news with you. We have officially merged with Wilson Partners – bringing our two businesses together to better serve our clients.