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The Employers' National Insurance Contributions (NICs) allowance is an allowance given to all employers to offset against their annual Employers' National Insurance liabilities. It is not a repayable credit.

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At a glance

From April 2015

From 6 April 2014

Most employers may claim a £2,000 Employment Allowance (EA) that may be offset against employer’s NICs (ER’s NICs) and so reduce the payroll cost of being an employer. The EA is:

This measure was originally announced in the 2013 Budget.

What's new?

From 6 April 2020

From 6 April 2016

Overview

How it works

From 2015 - additionally

Employers NICs are abolished for any employees who are under 21 and have earnings of up to £813 per week (£42,276 p.a.)

Other information:

The new employers NICs Holiday scheme ended in September 2013.

Excepted employers

The allowance may not be claimed by an employer if: