Answers · UK 2025/26
How much is the Employment Allowance in 2026/27?
The Employment Allowance for 2026/27 is £10,500. This reduces your employer National Insurance bill by up to £10,500 per year. It increased from £5,000 in 2025/26. Single-director companies where the director is the only employee cannot claim it.
Full answer
The Employment Allowance for 2026/27 is £10,500, a significant increase from £5,000 in 2024/25. This allowance reduces your employer Class 1 National Insurance contributions (NICs) bill each tax year. You can claim it as long as your employer NIC bill was less than £100,000 in the previous tax year. Most businesses and charities are eligible, but single-director companies where the director is the only employee cannot claim it. Connected companies share one Employment Allowance between them. The allowance is claimed through your payroll software via your Real Time Information (RTI) submissions. If your annual employer NIC bill is less than £10,500, the allowance is limited to your actual bill — it cannot create a repayment.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.