Employment Allowance

Employment Allowance, available from 6 April 2014, allows eligible businesses to reduce employer Class 1 National Insurance Contributions (NICs) by up to £2,000 each tax year.

If you are a business or charity (including Community Amateur Sports Clubs) that pays employer Class 1 NICs on your employees’ or directors’ earnings then your are likely to be eligble to claim the allowance. Details of excluded businesses are available on the Government website –  HMRC Guidance.

Can you register to claim Employment Allowance through Liberty Accounts?


An update has been applied enabling businesses to record the fact that they are eligible to claim Employment Allowance which is then submitted through an Employer Payment Summary (EPS).

Does Liberty Accounts calculate the Employment Allowance available?


On each payrun the system will calculate how much can be claimed, up to the £2,000 limit. At the end of the PAYE year this will be reset for the following year. (At the beginning of each year you should check your circumstances haven’t changed and that you remain eligible).

Eligibility and User Guides

Details of the allowance and information on eligibility are available from the Government web site. We have also prepared a User Guide detailing the process to register your eligibility and the handling of the Employment Allowance within Liberty Accounts.

Employment Allowance User Guide
HMRC Guidance

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