What Are the Eligibility Criteria for Employment Allowance?
Find out if your business qualifies for up to £10,500 off your National Insurance bill
Employment Allowance allows eligible employers to reduce their Class 1 National Insurance liability by up to £10,500 per year (2025/26 tax year).
This relief is applied directly through payroll if you meet the qualifying criteria.
✅ Who Can Claim?
You may be eligible if:
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You’re a business or registered charity
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You have more than one employee earning above the secondary National Insurance threshold
(£9,100 per year for 2025/26) -
OR you have two directors, and at least one is paid above the threshold
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Your business does not primarily operate in the public sector
❌ Who Cannot Claim?
You cannot claim Employment Allowance if:
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You are a single-director company and that director is the only employee earning above the threshold
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More than 50% of your business activities are for the public sector
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You employ someone for personal or household work (e.g. a nanny or housekeeper in a private home)
📎 Need More Detail?
You can find the full eligibility rules directly from HMRC here:
👉 HMRC: Employment Allowance eligibility
💬 Want Us to Check Your Eligibility?
If you're not sure whether your company qualifies:
💬 Contact us here and we’ll help review your setup.