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Could Your Business Be Missing Out on £10,500 in Employer NIC Savings?

If you’ve got staff on the payroll, there’s a good chance you could be saving money through the Employment Allowance – worth up to £10,500 in the 2025/26 tax year.

Over 1.2 million businesses claimed it last year, but many are still missing out simply because they don’t realise they qualify.

What is it?

The Employment Allowance is a government scheme that cuts your employer’s National Insurance bill. The saving is applied automatically through your payroll, so you feel the benefit straight away.

How much is it worth?

  1. Up to £10,500 a year for 2025/26.

  2. That’s money back in your business to help with cash flow, growth, or simply reducing costs.

Who can claim?

Most businesses with employees can – but there are a few exceptions:

  1. Single-director companies (where the director is the only employee) aren’t eligible.

  2. Employers of household staff such as nannies or gardeners (unless they’re carers/support workers).

  3. Public sector bodies (with some exceptions).

If you’ve got a team on payroll, chances are you’re good to go.

What’s new for 2025/26?

  1. The maximum allowance has more than doubled – now £10,500.

  2. More employers are eligible thanks to relaxed restrictions.

  3. The claim process is simpler, with fewer compliance hoops to jump through.

Can I backdate a claim?

Yes! You can go back up to 4 years. For example, you’ve still got until 5 April 2026 to claim for 2021/22 if you missed it.

Bottom line

If you’re not already claiming the Employment Allowance, you could be leaving thousands of pounds on the table. It’s quick to set up, saves real money, and helps improve cash flow.

Want to check if you qualify or get help with a claim? We’d be happy to guide you.

See the full details from ICAEW here: How to make the Employment Allowance work for you.