The Employment Allowance lets eligible employers reduce their National Insurance liability by up to £5,000 for the 2024/25 tax year. It’s designed to support smaller employers with their employment costs.
In April 2022, the allowance increased from £4,000 to £5,000 and from April 2025 the allowance will increase to £10,500 a year.
Employers’ Class 1 National Insurance contributions, rates, and thresholds for the tax year can be found on the government website.
