What is Employment Allowance and can I claim it for previous years?

Checked against the rating list and the rules in force as at 2026-08-23.

In short

Employment Allowance reduces an employer’s National Insurance bill by up to £10,500 a year. It has nothing to do with business rates. It is claimed through your payroll software, which is precisely why it gets overlooked. Where it was never claimed, it can generally be claimed for up to four previous tax years.

Where it hides

It isn’t on your council bill and it isn’t on the corporation tax return. It’s a setting in the payroll software.

The result is a standoff. Your accountant may assume it is already switched on, you have never heard of it, and the employer’s National Insurance goes on being overpaid year after year.

It’s the largest single recovery we make, because a claim settles several years at once.

A Chinese restaurant in Camden had never had the box ticked. Once found, it was claimed for the current year and for four previous tax years. Finding it took under ten minutes: one look at the employer’s National Insurance line on a payroll submission.

Who can claim

Broadly, an employer with staff and a liability to employer’s National Insurance.

One condition catches people out. A company with a single director and no other employees cannot claim. Family companies and husband-and-wife businesses need to look carefully at the real employment position, and we have seen this misjudged in both directions.

Charities, limited companies and partnerships each have their own detail. Three questions usually settle a given case: who is on the payroll, what the employer’s National Insurance came to, and whether anyone has already ticked the box.

How to start

Send a screenshot of a recent payroll submission, or the employer’s National Insurance figure from it. We will tell you the same day whether anything has been missed.

If you are already claiming, we will say so, and that costs nothing.

One flat fee: 10% of the savings we secure, confirmed in writing by the council. Nothing saved, nothing to pay.

If there's nothing to save, we say so.

Not sure how it applies to you?

Send a photo of your rates bill and we’ll tell you the same day whether there is anything to recover. WhatsApp 07594 933857.

Send a bill photo

Sources: Claim Employment Allowance (GOV.UK)

The numbers behind this, borough by borough

Each borough page carries the spread of rateable values and the value per square metre, by type of premises. It also ranks the most expensive streets in the borough. Those aggregations are ours.

Related questions

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