Businesses will not have to pay Employer National Insurance Contributions on the first £10,500. The Employment Allowance threshold is unchanged for 2027/2028.

Businesses will continue to not to have to pay Employer National Insurance Contributions on the first £10,500 of their annual bill.

• You cannot claim the employment allowance from April if:
• You’re the director and the only employee paid above the secondary threshold.
• You employ someone for personal, household or domestic work (like a nanny or gardener) – unless they are a care or support worker.
• You’re a public body or business doing more than half your work in the public sector (such as local councils and NHS services) – unless you’re a charity.
• You’re a service company working under ‘IR35 rules’ and your only income is the earnings of the intermediary (such as your personal service company, limited company or partnership).
• If the business exceeds the de minimis state aid threshold.
• Only one company in the group can claim the allowance.

Do remember that you can claim at any time in the tax year, as HMRC states: ‘you can make a claim for the employment allowance up to four years after the end of the tax year in which the allowance applies also that from April 2025, Employers paying more than £100,000 in Class 1 National Insurance liabilities can apply for Employment Allowance. The rules are different if you claim for previous tax years.