The Employment Allowance (EA) is an annual offset against your Employer’s National Insurance (NI) cost that you pay on top of your staff’s wages.
From the 2025-26 tax year, the EA will be increasing to £10,500 per year (up from the current £5,000) which covers the Employer’s NI cost of 4 employees working 35 hour per week on national minimum wage.
In addition to this, the EA will be available to companies whose prior years’ Employer’s NI bill was more than £100,000 which was previously not allowed.
Please be aware that connected companies, that are under the control of the same person or people, will not be able to claim EA on both companies, you need to be wary where the same people are involved with more than one company.
If we prepare your company payroll the EA will be claimed on your behalf as part of our service.
If you have any questions, please contact our Payroll Team on 01623 420269.
