Are you missing out on up to £10,500?

IN APRIL THIS YEAR, THE EMPLOYMENT ALLOWANCE WAS RAISED TO £10,500. BUT ARE YOU CLAIMING IT?

Employment Allowance lets eligible employers offset their National Insurance contributions, which they pay annually to HMRC. The scheme aims to support smaller businesses and charities by reducing their employment costs – however this comes amidst a rise in the employer National Insurance rate (to 15%), which will adversely affect many organisations.

The allowance rate before April 2025 was £5,000 each year – so the jump to £10,500 is a big one and will hopefully balance out this National Insurance rate rise.

So what does this mean for your business?

• It means you’ll pay less employers’ National Insurance each time you run your payroll – until either the £10,500 has been reached, or the tax year ends, whichever happens first.
• You can only claim against your employers’ National Insurance liability up to a maximum of £10,500 each tax year. You can still claim the allowance if your annual contribution amount is less than £10,500.
• The change should hopefully lead to more stable cash flow in and out of your business. It should also put businesses in a healthier position to grow, and able to hire more employees to support that growth.

If we manage your payroll, we always claim this for you so no action is necessary.

For our non-payroll clients we have discovered that not everyone is claiming it and they are potentially losing out (up to £10,500.)

Speak to us for more details if you are concerned about missing out!