HMRC Employment Allowance 2026£10,500 Annual Saving£100k NIC Threshold
Employment Allowance £10,500 NIC Relief Calculator
Calculate your Employment Allowance NIC saving — up to £10,500 per year offset against Employer Class 1 National Insurance Contributions bill.
Employment Allowance NIC Saving Estimator
Compute eligible Employer NIC saving and post-allowance NIC liability
£
Employment Allowance Result:
Employer NIC Bill
£25,000
Annual TotalEA Saving
£10,500
Offset Against NICNIC Still Owed
£14,500
After EA AppliedEmployment Allowance Eligibility Rules (2025/2026)
| Rule | Detail | Effect |
|---|---|---|
| Maximum Allowance | £10,500 / tax year | Max NIC offset |
| Eligibility Threshold | Prior year Employer NIC < £100,000 | Annual check |
| Sole Director Exclusion | Only employee = director; no other staff | Cannot claim |
| Connected Companies | Combined NIC over £100,000 | Cannot claim |
| Domestic Employers | Household staff (cleaners, nannies) | Cannot claim |
Frequently Asked Questions (FAQs)
The Employment Allowance is a £10,500 annual reduction on your Employer Class 1 National Insurance Contributions bill, available to eligible businesses and charities.
Businesses and charities can claim Employment Allowance if their total Employer NIC bill was under £100,000 in the previous tax year and they have at least one employee beyond the sole director.
No. If the only employee in the company is also the sole director, you cannot claim the Employment Allowance. You can claim if you have at least one other employee.
You claim through your payroll software by selecting 'Yes' for Employment Allowance in your Employer Payment Summary (EPS) submission to HMRC.
Your Employer NIC bill must have been below £100,000 in the previous tax year to be eligible for Employment Allowance in the current year.