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 £5,000. You can check your eligibility for Employment Allowance on HMRC's website.
Changes in the 2025/26 Tax Year
From 6th April 2025 the maximum amount of Employment Allowance that you are able to claim has increased to £10,500 from £5,000 in the previous year.
Employment Allowance Operates under De Minimis state aid (further guidance) and the eligibility criteria has Remained the same for the 25/26 tax year, Employment allowance applies 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.
Claiming Employment Allowance Within the Previous Year
If you are claiming Employment Allowance for a previous year, you will need to log into the relevant year and create the company if it does not already exist. Then go to 'Company Maintenance > Tax and NI' tick that you would like to claim the Employment Allowance and select the relevant State Aid Sector, then submit the EPS for month 12.
