1st Friday
Tax Chat

Employment Allowance – did you claim it?

Employment Allowance – did you claim it?

The employment allowance was introduced from 6 April 2014 to provide some relief to small businesses from the payroll cost of employers class 1 NIC. 

The allowance provides relief of up to £3,000 per tax year.  Although aimed at small business, the allowance is available to all sizes of businesses, with some exceptions.

It is worth checking that you did claim the employment allowance for each year from 2014/15.  If you didn’t and you are eligible, a claim can be made retrospectively.  The credit can be offset against current / future PAYE liabilities, repaid or set off against corporation tax.

Remember that from 6 April 2016, companies with only one employee director cannot claim the employment allowance.  However, they can make a claim for earlier years when the allowance was available.

For more information, please contact Lesley Sutton on 01484 550037 or email

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