What has changed
For 2026/27 the Employment Allowance is worth up to 10,500 pounds off your employer National Insurance bill, and the old 100,000 pound restriction has been removed, so far more businesses now qualify.
Who it affects
Employers with staff. A company whose only employee is also the sole director usually cannot claim it, which catches out many one person companies.
What you should do
Check whether you are claiming the allowance you are entitled to, and make sure your payroll software is applying it. If you have taken on a second employee, your eligibility may have changed.
Our view
This is free money for many small employers, yet we regularly find businesses not claiming it. It is well worth a quick check.
Common questions
Who does this affect?
Employers with staff. A company whose only employee is also the sole director usually cannot claim it, which catches out many one person companies.
What should I do about it?
Check whether you are claiming the allowance you are entitled to, and make sure your payroll software is applying it. If you have taken on a second employee, your eligibility may have changed.
Can TaxTune help me with this?
Yes. Tell us your situation through the quote builder or book a free call, and we will explain exactly what it means for you and handle it if you would like.