PAYE56001 | Employer returns: NICs employment allowance: introduction

The NICs Employment Allowance is available for businesses, charities and Community Amateur Sports Clubs to offset against their employer Class 1 NICs liability.

The value of the Employment Allowance is a maximum of £3,000 for tax years 2016 to 2017, to 2019 to 2020 .£4,000 for tax years 2020 to 2021 and 2021 to 2022, increasing to £5,000 for tax years 2022 to 2023, to 2024 to 2025. From 2025 to 2026 onwards, the maximum is £10,500.

From 6 April 2020 eligibility rules for claiming the Employment Allowance changed. Further information on eligibility from 6 April 2020 to 5 April 2025 is available at GOV.UK see Changes to Employment Allowance.

It is for employers to determine their eligibility for the allowance: there on some restrictions. Further information on eligibility from 6 April 2025 is available at GOV.UK see claim Employment Allowance.