{"id":641,"date":"2026-04-06T22:17:35","date_gmt":"2026-04-06T21:17:35","guid":{"rendered":"https:\/\/guide.no-worries.co.uk\/?post_type=ht_kb&#038;p=641"},"modified":"2026-04-06T22:17:52","modified_gmt":"2026-04-06T21:17:52","slug":"the-employment-allowance-2026-27","status":"publish","type":"ht_kb","link":"https:\/\/guide.no-worries.co.uk\/index.php\/knowledge-base\/the-employment-allowance-2026-27\/","title":{"rendered":"The Employment Allowance 2026\/27"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">The Employment Allowance is available which can help reduce your employer Class 1 National Insurance contributions (NICs)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Employment Allowance can significantly reduce the amount of Employer\u2019s Class 1 National Insurance Contributions (NICs) your business pays each tax year. For the <strong>2026\/27<\/strong> tax year, this allowance remains at a substantial level, making it potentially very beneficial for eligible businesses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Information for 2026\/27:<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Allowance Amount:<\/strong> The Employment Allowance remains at <strong>\u00a310,500<\/strong>.<\/li>\n\n\n\n<li><strong>Employer NIC Rate:<\/strong> Employer NIC rate remains at <strong>15%<\/strong>.<\/li>\n\n\n\n<li><strong>Secondary Threshold:<\/strong> The employer NIC threshold remains at <strong>\u00a35,000<\/strong>.<\/li>\n\n\n\n<li><strong>Eligibility Threshold Removed:<\/strong> The previous eligibility condition based on employer NICs being below <strong>\u00a3100,000<\/strong> in the previous tax year continues to be removed, so more businesses can qualify.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Are you eligible?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Employment Allowance is available to most companies with two or more employees paid above the Class 1 National Insurance secondary threshold (<strong>\u00a35,000 per year<\/strong>).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, certain important restrictions apply:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Single-Director Companies:<\/strong> Companies where only one employee is paid above the secondary threshold, and that employee is also the director, are not eligible.<\/li>\n\n\n\n<li><strong>Connected Companies:<\/strong> If your company is part of a group (connected companies), only one company in the group can claim the allowance.<\/li>\n\n\n\n<li><strong>Excluded Employees:<\/strong> The allowance cannot be claimed for workers within IR35 rules or for personal, household, or domestic employees, except care or support workers in qualifying cases.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How to Claim the Employment Allowance<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To benefit from this allowance, your company needs to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pay salaries at a level attracting Employer\u2019s NIC, above <strong>\u00a35,000 per year per employee<\/strong>.<\/li>\n\n\n\n<li>Submit a claim each year through your payroll software. This is not automatic, and the allowance must be actively claimed for the tax year.<\/li>\n\n\n\n<li>Once claimed, your payroll software will automatically deduct the allowance from the Employer\u2019s NIC liabilities throughout the year until the full <strong>\u00a310,500<\/strong> is used.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How We Can Help<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As part of our comprehensive accounting service, we can manage all necessary filings and bookkeeping on your behalf. We will:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ensure your Employment Allowance claim is filed correctly and promptly each tax year.<\/li>\n\n\n\n<li>Accurately calculate your Employer NIC liabilities and inform you quarterly of any payments due.<\/li>\n\n\n\n<li>Provide detailed payroll instructions, ensuring your salary payments match payroll records exactly.<\/li>\n\n\n\n<li>Help you avoid penalties by ensuring timely and correct payments to HMRC.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Considerations and Potential Pitfalls<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>While beneficial, claiming the Employment Allowance increases payroll administration. Ensure you can manage this or rely on professional support.<\/li>\n\n\n\n<li>Your overall tax position, including income from dividends, other employment, or investments, may affect the net tax advantage of claiming this allowance.<\/li>\n\n\n\n<li>Consult with our team if you have additional income sources or taxable benefits to ensure claiming the allowance remains beneficial.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Summary<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For most single-director contractor companies, the Employment Allowance is typically not applicable or beneficial. However, for eligible multi-director or multi-employee companies, the <strong>\u00a310,500<\/strong> allowance continues to present a valuable opportunity for reducing your employer NIC costs in <strong>2026\/27<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We encourage you to consider your specific circumstances carefully and reach out to us with any questions or for assistance in managing your payroll effectively.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Employment Allowance is available which can help reduce your employer Class 1 National Insurance contributions (NICs) The Employment Allowance can significantly reduce the amount of Employer\u2019s Class 1 National Insurance Contributions (NICs) your business pays each tax year. For the 2026\/27 tax year, this allowance remains at a substantial&#8230;<\/p>\n","protected":false},"author":1,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":{"footnotes":""},"ht-kb-category":[44],"ht-kb-tag":[],"class_list":["post-641","ht_kb","type-ht_kb","status-publish","format-standard","hentry","ht_kb_category-2026-27-tax-guides"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Employment Allowance 2026\/27 | No Worries Help Centre<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Employment Allowance 2026\/27 | No Worries Help Centre\" \/>\n<meta property=\"og:description\" content=\"The Employment Allowance is available which can help reduce your employer Class 1 National Insurance contributions (NICs) The Employment Allowance can significantly reduce the amount of Employer\u2019s Class 1 National Insurance Contributions (NICs) your business pays each tax year. For the 2026\/27 tax year, this allowance remains at a substantial...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/guide.no-worries.co.uk\/index.php\/knowledge-base\/the-employment-allowance-2026-27\/\" \/>\n<meta property=\"og:site_name\" content=\"No Worries Help Centre\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-06T21:17:52+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/guide.no-worries.co.uk\\\/index.php\\\/knowledge-base\\\/the-employment-allowance-2026-27\\\/\",\"url\":\"https:\\\/\\\/guide.no-worries.co.uk\\\/index.php\\\/knowledge-base\\\/the-employment-allowance-2026-27\\\/\",\"name\":\"The Employment Allowance 2026\\\/27 | No Worries Help Centre\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/guide.no-worries.co.uk\\\/#website\"},\"datePublished\":\"2026-04-06T21:17:35+00:00\",\"dateModified\":\"2026-04-06T21:17:52+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/guide.no-worries.co.uk\\\/index.php\\\/knowledge-base\\\/the-employment-allowance-2026-27\\\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/guide.no-worries.co.uk\\\/index.php\\\/knowledge-base\\\/the-employment-allowance-2026-27\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/guide.no-worries.co.uk\\\/index.php\\\/knowledge-base\\\/the-employment-allowance-2026-27\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/guide.no-worries.co.uk\\\/index.php\\\/home\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Articles\",\"item\":\"https:\\\/\\\/guide.no-worries.co.uk\\\/index.php\\\/knowledge-base\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"The Employment Allowance 2026\\\/27\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/guide.no-worries.co.uk\\\/#website\",\"url\":\"https:\\\/\\\/guide.no-worries.co.uk\\\/\",\"name\":\"No Worries Help Centre\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/guide.no-worries.co.uk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Employment Allowance 2026\/27 | No Worries Help Centre","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_GB","og_type":"article","og_title":"The Employment Allowance 2026\/27 | No Worries Help Centre","og_description":"The Employment Allowance is available which can help reduce your employer Class 1 National Insurance contributions (NICs) The Employment Allowance can significantly reduce the amount of Employer\u2019s Class 1 National Insurance Contributions (NICs) your business pays each tax year. For the 2026\/27 tax year, this allowance remains at a substantial...","og_url":"https:\/\/guide.no-worries.co.uk\/index.php\/knowledge-base\/the-employment-allowance-2026-27\/","og_site_name":"No Worries Help Centre","article_modified_time":"2026-04-06T21:17:52+00:00","twitter_card":"summary_large_image","twitter_misc":{"Estimated reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/guide.no-worries.co.uk\/index.php\/knowledge-base\/the-employment-allowance-2026-27\/","url":"https:\/\/guide.no-worries.co.uk\/index.php\/knowledge-base\/the-employment-allowance-2026-27\/","name":"The Employment Allowance 2026\/27 | No Worries Help Centre","isPartOf":{"@id":"https:\/\/guide.no-worries.co.uk\/#website"},"datePublished":"2026-04-06T21:17:35+00:00","dateModified":"2026-04-06T21:17:52+00:00","breadcrumb":{"@id":"https:\/\/guide.no-worries.co.uk\/index.php\/knowledge-base\/the-employment-allowance-2026-27\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/guide.no-worries.co.uk\/index.php\/knowledge-base\/the-employment-allowance-2026-27\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/guide.no-worries.co.uk\/index.php\/knowledge-base\/the-employment-allowance-2026-27\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/guide.no-worries.co.uk\/index.php\/home\/"},{"@type":"ListItem","position":2,"name":"Articles","item":"https:\/\/guide.no-worries.co.uk\/index.php\/knowledge-base\/"},{"@type":"ListItem","position":3,"name":"The Employment Allowance 2026\/27"}]},{"@type":"WebSite","@id":"https:\/\/guide.no-worries.co.uk\/#website","url":"https:\/\/guide.no-worries.co.uk\/","name":"No Worries Help Centre","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/guide.no-worries.co.uk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/guide.no-worries.co.uk\/index.php\/wp-json\/wp\/v2\/ht-kb\/641","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/guide.no-worries.co.uk\/index.php\/wp-json\/wp\/v2\/ht-kb"}],"about":[{"href":"https:\/\/guide.no-worries.co.uk\/index.php\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/guide.no-worries.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/guide.no-worries.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=641"}],"version-history":[{"count":1,"href":"https:\/\/guide.no-worries.co.uk\/index.php\/wp-json\/wp\/v2\/ht-kb\/641\/revisions"}],"predecessor-version":[{"id":642,"href":"https:\/\/guide.no-worries.co.uk\/index.php\/wp-json\/wp\/v2\/ht-kb\/641\/revisions\/642"}],"wp:attachment":[{"href":"https:\/\/guide.no-worries.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=641"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/guide.no-worries.co.uk\/index.php\/wp-json\/wp\/v2\/ht-kb-category?post=641"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/guide.no-worries.co.uk\/index.php\/wp-json\/wp\/v2\/ht-kb-tag?post=641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}