The National Insurance contributions (NICs) Employment Allowance was introduced in April 2014, for the purpose of supporting businesses and charities in helping them to grow by cutting the cost of employment. Employers can reduce the amount of NICs they pay for their employees by up to £3,000. This is an ongoing allowance.
Once an employer has claimed the allowance, they will continue to enjoy it in future years without needing to do anything further.
You can only claim against Class 1 National Insurance you’ve paid, up to a maximum of £3,000 each tax year. You can still claim the allowance if you pay less than £3,000 a year. Eligible employers can claim the allowance, which reduces their Employer NICs bill by up to £3,000 a year. Over a million employers have benefited from the allowance since its introduction.
If you qualify for the employment allowance in 2016/17 please double check that you still match the criteria. We will automatically claim the employment allowance unless you inform us otherwise.
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