As a company you can claim employment allowance if you are paying class 1 national insurance.

This allows you £3,000.00 of employers NI contributions that do not have to be paid. There are some circumstances where you may not be eligible but these are rare, the revenues site has guidance and a calculator to check whether you are eligible.


Changes in the 2016/17 Tax Year

From 6th April 2016 the maximum amount of Employment Allowance that you are able to claim has risen to £3,000. A new rule has been introduced which excludes companies for whom their only employee is a director from claiming Employment Allowance.
Upon migrating the utility will automatically carry across the indicator for Employment Allowance and that the claim has been submitted to HMRC. This means that once you start the 2016/17 tax year you will not have to make any changes to continue or increase your Employment Allowance claim.


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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