The Payroll Site

How can I claim the employment allowance?

The employment allowance allows eligible employers to reduce their National Insurance costs.

You can check your eligibility on

If you are eligible:

  1. Set the employment allowance option on the 'Employer' page.
  2. Click 'HMRC Payments / EPS'.
  3. Click on the 'EPS Submission' tab.
  4. Follow the instructions on screen to send an 'Amounts to Reclaim' EPS to HMRC.
  5. The Payroll Site automatically offsets the allowance against your payments to HMRC, so it appears on the HMRC Payments page but does not affect the Pay Employees section or the Export to Accounting feature.

From April 2020, changes to the eligibility rules mean that a new claim must be made for the new tax year. You also need to say which sectors apply, for the purposes of de minimis state aid.

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