Employment Allowance 2023-24

As we are at the start of the 2023-24 tax year it is important that businesses consider whether they qualify for the Employment Allowance. 
 
The Employment Allowance is worth up to £5,000 and is offset against the employer’s National Insurance liability up to the £5,000 limit. 
 
There are four main criteria to be considered when assessing whether a business is entitled to claim the employment allowance or not.  These four criteria are: 

1. The employer’s Class 1 National Insurance liability must have been below £100,000 in the previous tax year ended 5 April 2023.  If it was above this amount, either for the company or for all group and connected companies in total, then the Employment Allowance cannot be claimed;
2. No claim can be made where there is only one employee paid above the Class 1 National Insurance secondary threshold (£9,100 for 2023-24), and that employee is also a director of the company;
3. No claim can be made where you employ someone for personal, household or domestic work (e.g. a nanny or a gardener);
4. Only one company that is in a group or has connected companies (i.e. share common controlling shareholders) is entitled to claim the Employment Allowance. 

If you have any queries, or would like us to assist you with a review of whether you qualify for the Employment Allowance, please contact us.