What is the Employment Allowance and am I eligible?
- Federation of Small Businesses
- Dec 9, 2024
- 2 min read
Updated: Dec 12, 2024
The Employment Allowance lets eligible employers reduce their National Insurance liability by up to £5,000 for the 2024/25 tax year. It’s designed to support smaller employers with their employment costs.
In April 2022, the allowance increased from £4,000 to £5,000 and from April 2025 the allowance will increase to £10,500 a year.
Employers’ Class 1 National Insurance contributions, rates, and thresholds for the tax year can be found on the government website.
Am I eligible to claim?
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