Are you one of the 32% who HAVEN’T yet reclaimed the £2,000 Employment Allowance?

4 years ago

GOV.UKThe HMRC have just released their first mid-year estimate as to the take up of the Employment Allowance.

From the outset they estimated some 1.25 million businesses in the UK could benefit from saving up to £2,000 with no strings attached and an impressive 68% of micro business employers have already chosen to take this up!

But are you one of the 32% of businesses with 1-9 employees who’ve not yet taken advantage of free stuff from the government?


Employer Size No of Employers Estimated %age take up
1 to 9 663,000 68%
10 to 49 163,000 73%
50 to 249 26,000 56%
250+ 4,000 35%
Total 856,000 68%


What is the Employers NIC Allowance and how can I claim it?

The ‘Employment Allowance’ is part of the Governments on going package of support for businesses in the UK with ambitions to encourage the employment of new staff.

From 6th April 2014, employers and charities are entitled to claim back (i.e. reduce) up to £2,000 per tax year from their employers Class 1 National Insurance (NIC).

You can take advantage claim your Employers NIC Allowance using your payroll software by instructing HMRC on the Employer Payment Submission under RTI and track this on your P32 report.

Our Sage One Payroll software is designed for small and micro businesses with 15 employees or less and you can see how easy it is to claim your allowance in our previous blog titled ‘Managing the £2,000 ‘Employment Allowance’ for National Insurance in Sage One Payroll‘.