Employment Allowance 2025/26 Calculator — £10,500
Calculate Employment Allowance for 2025/26 — now £10,500 (doubled from £5,000). Check eligibility and employer NIC savings including the 15% rate increase.
Employment Allowance 2025/26 Calculator
The Employment Allowance increased to £10,500 from 6 April 2025 (from £5,000). Calculate your employer NIC saving and check eligibility.
Frequently Asked Questions
What is the Employment Allowance for 2025/26?
The Employment Allowance increased to £10,500 per year from 6 April 2025, doubled from the previous £5,000 limit. This means eligible employers can offset up to £10,500 of their secondary (employer) Class 1 NIC liability each tax year.
Who can claim Employment Allowance in 2025/26?
Most employers with at least one employee (other than the sole director) can claim EA. Eligibility was also expanded — previously restricted to employers with a secondary NIC bill under £100,000 in the previous tax year. From April 2025, this restriction was removed.
Can a company with only a director claim Employment Allowance?
No. If the only employee paid above the Secondary Threshold is the director themselves, Employment Allowance cannot be claimed. You need at least one other employee paid above the threshold. Adding a second employee (even part-time) unlocks EA.
How much extra NIC saving does the £10,500 EA give vs £5,000?
An additional £5,500 of saving. At the new 15% employer NIC rate from April 2025, this represents salary headroom of approximately £36,667 of additional wages before employer NIC kicks in.
How do I claim Employment Allowance?
Claim via your payroll software or HMRC's PAYE Online service. Tick 'Yes' for Employment Allowance at the start of the tax year. The allowance is applied by reducing each monthly/weekly PAYE payment until exhausted. You can backdate a claim up to 4 years.
Does Employment Allowance count as state aid?
In certain sectors (agriculture, fisheries, aquaculture), Employment Allowance counts as de minimis state aid, subject to an EU-equivalent cap. Most UK businesses are unaffected. From April 2025, the threshold was increased and de minimis rules updated post-Brexit.
Does the employer NIC rate change affect Employment Allowance?
Yes — the employer NIC rate increased from 13.8% to 15% from 6 April 2025. This increases employers' NIC bills, making the £10,500 Employment Allowance even more valuable. For a business paying exactly £10,500 in employer NIC, the full allowance offsets the entire bill.
Can Employment Allowance be carried over to the next tax year?
No. The Employment Allowance can only be set against the current tax year's employer NIC liability. Unused allowance cannot be carried forward. It resets to £10,500 each April.