Employment Allowance
HM Revenue and Customs
Worth
Up to £10,500
Tax relief
Deadline
Rolling - no fixed deadline
Type of funding
Tax relief
Where
UK-wide
What it is
A cut to your employer National Insurance bill, not a grant: eligible employers pay up to £10,500 less employer NI each tax year. You switch it on in your payroll software and it is used up as you run payroll.
Checked 6 Nov 2026 on GOV.UK: worth up to £10,500 off employer Class 1 National Insurance in the 2026 to 2027 tax year; claimed by putting Yes in the Employment Allowance indicator on an Employer Payment Summary; a company whose only employee is its sole director cannot claim; only one company in a connected group can claim.
Official sourceWho can apply
A summary of the main rules, not the full list. HM Revenue and Customs decides who is eligible, so read their guidance before you apply. The free scan checks these against your own business.
- You employ staff, not only yourself as a sole director
You cannot apply if
- Your only employee is a director (a company whose only employee is its sole director can't claim)
How to apply, in brief
Your payroll software, payroll bureau or accountant, by setting the Employment Allowance indicator on an Employer Payment Summary (EPS) sent to HMRC.
- 1Check you can claim
- 2Set the indicator in your payroll software
- 3If you use HMRC's Basic PAYE Tools
- 4Let it run, and only stop it if you become ineligible
The full guide, with what to do at each step, the official link for it and a draft to work from, is part of the £19.95 report.
Common questions
- Is Employment Allowance open for applications?
- Yes. It is open for applications, with no fixed deadline.
- How much is Employment Allowance worth?
- Up to £10,500. It is a tax relief, and the funder decides what each applicant receives.
- Who runs Employment Allowance, and where is it available?
- HM Revenue and Customs runs it. It is available across the UK.
- How do I apply for Employment Allowance?
- Your payroll software, payroll bureau or accountant, by setting the Employment Allowance indicator on an Employer Payment Summary (EPS) sent to HMRC.
Does your business qualify?
Eligibility rules are where schemes get fiddly. Gov Owed checks your business against Employment Allowance — and every other UK scheme we track — in about two minutes, free. The £19.95 report then explains exactly why you qualify, drafts your answers and walks you through the real application step by step.
Check my businessNo sign-up to scan · keep 100% of anything you win · re-runs free for 12 months
Related schemes
Build It
Firstport (Scottish Government Social Entrepreneurs Fund)
Midlothian Employer Recruitment Incentive 2026/27
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Future Works Employer Recruitment Incentive 2026/27
Perth & Kinross Council (Local Employability Partnership, No One Left Behind)
West Lothian Employment Pathway Grant
West Lothian Council (Economic Development Service)
Information, not financial advice; eligibility is decided by the funder. Contains public sector information licensed under the Open Government Licence v3.0. Schemes change — confirm details on the official page before applying.