PAYE56020 | Employer returns: NICs employment allowance: employment allowance claim ends

The claim for the Employment Allowance will continue into subsequent tax years unless the employer advises us of a change. If an employer determines that they are no longer eligible, they can stop the claim by using their payroll software or Basic PAYE Tools (BPT) to select ‘No’ in the ‘Yes / No’ indicator for NICs Employment Allowance.

If the employer stops the claim before the end of the tax year no Employment Allowance will be due for that year. Any Class 1 NICs previously covered by Employment Allowance must be repaid by the employer.

From 6 April 2020 the Employment Allowance did not continue in to subsequent tax years, employers have to claim the Employment Allowance each tax year.

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.

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