03/06/2026
Employment Allowance just got a major boost. 💷
For the 2025/26 tax year, eligible businesses can now claim up to £10,500 in Employment Allowance.
That’s more than double the previous £5,000 allowance.
The allowance reduces your employer Class 1 National Insurance bill throughout the tax year as payroll is processed.
If your employer NI liability is below £10,500, it could be reduced to zero.
If it’s higher, the allowance is capped at £10,500 before normal NI contributions apply.
One important thing to remember: Unused Employment Allowance cannot be carried forward into the next tax year.
If you’re unsure whether your business qualifies, now is the time to check.
Find out more or speak to our team today: www.theprofitworks.com