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

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At a glance

The Employers' National Insurance Contributions (NICs) allowance is an allowance given to small and medium sized employers to offset against their annual Employers' National Insurance liabilities.

It is not a repayable credit.

Qualifying UK employers may claim an Employment Allowance to offset against employer’s NICs (ER’s NICs) and so reduce the payroll cost of being an employer.

Amount of allowance

Years 2022-23 2020-22 2016-20 2014-16

 

Allowance

 

£5,000

 

£4,000

 

£3,000

 

£2,000

 Extra restrictions    a)  b)  c)

The allowance:

Restrictions:

The allowance may not be claimed by an employer if:

There are also restrictions following the merger of two businesses which have claimed the allowance up until that point in the tax year.

Further details and worked examples

See Employer's NICs allowance