What Are the Recent Changes to Employment Allowance for 2025/26?
Key updates that could increase your NIC savings and broaden eligibility
Big changes are coming to Employment Allowance in the 2025/26 tax year — and they could significantly benefit your business.
📈 What’s Changing?
💷 Increased Allowance
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From 6 April 2025, the Employment Allowance will rise from £5,000 to £10,500
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This means eligible employers can reduce their annual Class 1 National Insurance bill by more than double the previous amount
🚫 Removal of the £100,000 NIC Cap
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Previously, businesses couldn’t claim the allowance if their total employer NIC liability in the previous year exceeded £100,000
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From 2025/26, this cap is being removed, expanding eligibility to larger employers
✅ What This Means for You
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You could save up to £10,500 a year on your employer National Insurance contributions
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If you were previously ineligible due to the £100,000 cap, you may now qualify
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This change applies from the start of the 2025/26 tax year (6 April 2025)
📎 More Information
You can read our full breakdown here:
👉 Employment Allowance 2025 – Your Guide to the New Changes
💬 Not sure if you're eligible or want us to review your status?
Contact us here and we’ll help you assess your position for 2025/26.