Employment Allowance allows eligible employers to reduce their employers NI.

Employment Allowance allows eligible employers to reduce their (Secondary) Class 1 NIC (Employers NIC) by  £4,000. You can check your eligibility for Employment Allowance on HMRC's website.


Changes in the 2020/121 Tax Year

From 6th April 2020 the maximum amount of Employment Allowance that you are able to claim has increased to £4,000 from £3,000 in the previous year.


Employment Allowance is now operating under De Minimis state aid (further guidance) and the eligibility criteria has been adjusted to only apply to employers whose (Secondary) Class 1 NIC (Employers NIC) is beneath £100,000 (further guidance)


Submitting Employment Allowance In Qtac

You can set employment allowance is the Qtac software by going to “Company > Company Maintenance” Under the “Tax and NI” tab. Once the check box for “Employment Allowance” is checked you will need to submit an EPS from the software to let the revenue know that the claim has gone through. For detail on submitting an EPS see the guide EPS & Period of Inactivity.



Employment Allowance Brought Forward

If you are taking over a payroll and a figure for employment allowance has already previously been claimed you can show that some of the EA has already been claimed in company maintenance. Under the Tax and NI tab there is a field for EA where you can claim employment allowance by checking a box as described above. If you also add in a figure in the box below you can set how much has already been claimed. You will also have to add in the last period that was paid from the previous employment, selected from the drop down box.


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