Employment allowance – up to £2,000 off your Employers Class 1 NICs

In a bid to help small and medium sized business’s and to encourage them to take on new staff the Government is introducing the employment allowance which means Employers can claim back up to £2,000 in Employer NIC contributions a year.

The allowance starts on 6th April 2014 and you claim the allowance on your RTI submission to HM Revenue and Customs.

As is the case with many of these claims there are some excluded Employers and the claims are limited to one claim per group of businesses.

Excluded employers

Not all employers qualify, the excluded employers include:-

  • Employ someone for personal, household or domestic work ie Nanny, chauffeur, Gardener
  • Public authorities
  • Carry out function either wholly or mainly of a public nature.


What it does mean is that Charities, Community Amateur sports Clubs etc can claim this relief.

How you make your claim

You should claim the allowance via your payroll software, on the first payment date after 6 April 2014. Thus when you make your RTI return to HMRC the claim will be registered.

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