Home/UK/Employment Allowance Employer Ni Calculator

HMRC Employment Allowance 2026/27Up to £10,500No £100k Current-Year Eligibility Cap

Employment Allowance £10,500 NIC Relief Calculator

Check whether your employer can claim Employment Allowance for 2026/27 and estimate how much of your secondary Class 1 NIC bill could be offset, up to £10,500.

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Check Your 2026/27 Employment Allowance Eligibility and Saving

Enter your annual employer Class 1 NIC liability and answer the main eligibility questions to estimate your Employment Allowance saving and see which rule may prevent a claim.

Employment Allowance Eligibility & Saving Calculator

Estimate your 2026/27 employer Class 1 NIC reduction and check the main eligibility rules

Annual Employer NIC Bill (£)

Another Employee Liable for Secondary Class 1 NIC?A sole director can claim only if they are not the only employee liable for secondary Class 1 NIC.

Part of a Connected Group?Only one connected company or charity can claim the allowance for the group.

Is This the Group's Claiming Employer?

Public Body?

Charity / Community Amateur Sports Club?

Does More Than Half of the Work Come From the Public Sector?Businesses doing more than half their work in the public sector generally cannot claim, subject to the applicable exceptions.

Employ a Qualifying Care / Support Worker?Certain employers of care or support workers can qualify even where household-employment rules would otherwise matter.

Employment Allowance Result:

Employer NIC Bill

£25,000

Annual Total

EA Saving

£10,500

Offset Against NIC

NIC Still Owed

£14,500

After EA Applied

Employment Allowance Eligibility Rules (2026/27)

Rule	Detail	Effect
Maximum Allowance	£10,500 per tax year	Max NIC offset
£100,000 Previous-Year Test	Removed from claims for 2025/26 onwards	No current cap
Sole Director	Sole director must not be the only employee liable for secondary Class 1 NIC	Restriction applies
Connected Companies / Charities	Only one connected company or charity can claim	Group selection required
Public Sector Work	Businesses doing more than half their work in the public sector generally cannot claim; charities have special treatment	Check status
Care / Support Employers	Certain employers of care or support workers can qualify	Special category

What Changed for Employment Allowance?

2026/27

£10,500

Maximum annual Employment Allowance.

Since 6 Apr 2025

£100k test removed

The old previous-year NIC liability restriction no longer applies to 2025/26 and later claims.

Connected group

One claimant

Only one company or charity in the connected group can claim for a tax year.

How the Saving Is Calculated

STEP 1

Employer secondary Class 1 NIC

Start with the employer's annual secondary Class 1 NIC liability.

STEP 2

Apply up to £10,500

The allowance reduces eligible secondary Class 1 NIC liability up to the annual limit.

STEP 3

Pay remaining NIC

Any liability above the allowance remains payable through payroll.

Example: If eligible annual secondary Class 1 NIC is £25,000, the maximum Employment Allowance used is £10,500 and the remaining employer NIC liability is £14,500.

Claiming Through Payroll

HMRC says the Employment Allowance is claimed through the employer's payroll process by sending an Employer Payment Summary (EPS). If an employer has more than one PAYE scheme, only one PAYE scheme can be nominated for the allowance in that tax year.

Previous-year claims: Claims can be made for the previous 4 tax years, but the eligibility rules depend on the year being claimed. The former £100,000 restriction applies to 2024/25 and earlier claims, not to 2025/26 and later claims.

Frequently Asked Questions (6 FAQs)

Eligible employers can reduce their annual secondary Class 1 National Insurance liability by up to £10,500 for the 2026/27 tax year. The allowance is used against employers' secondary Class 1 NIC liability and stops when the allowance is used or the tax year ends.

No. For claims from 6 April 2025 onwards, the previous restriction based on having £100,000 or more of secondary Class 1 NIC liabilities in the previous tax year was removed. Eligible employers can therefore claim Employment Allowance regardless of their previous-year employer NIC liability, subject to the current eligibility rules.

A company with only one director can claim only if that director is not the company's only employee liable for secondary Class 1 National Insurance. If the sole director is also the only employee liable for secondary Class 1 NIC, the company cannot claim.

If companies or charities are connected, only one company or charity in the group can claim Employment Allowance for the tax year. The old £100,000 combined-NIC test is not the current 2026/27 eligibility rule.

Charities, including community amateur sports clubs, can claim if they satisfy the applicable conditions. Certain employers of care or support workers can also qualify. Public bodies and businesses doing more than half of their work in the public sector generally cannot claim unless a relevant exception, such as the charity rules, applies.

For the current year, the claim is normally made through payroll by sending an Employer Payment Summary (EPS). HMRC says claims can be made for the previous 4 tax years, but the eligibility rules differ for earlier years: the old £100,000 restriction applies to 2024/25 and earlier claims, while it does not apply to 2025/26 and later claims.