UK · Employer costs · 2026–27
Employment Allowance calculator.
Enter your yearly employer Class 1 NI bill and see how much of the £10,500 Employment Allowance you can claim and what is left to pay.
Your figures
Your claim
Enter your NI bill to see the allowance.
How does the Employment Allowance work?
GOV.UK says the Employment Allowance lets eligible employers reduce their annual National Insurance liability by up to £10,500, and that you can only claim against employer Class 1 NI up to that amount in each tax year. You can still claim if your liability was lower than £10,500.
Worked example. A £18,000 employer NI bill less the £10,500 allowance leaves £7,500 to pay. A £6,000 bill is fully covered and £4,500 of the allowance goes unused.
The checkboxes cover three exclusions GOV.UK lists. Eligibility has more detail, including who you cannot include in a claim (for example household staff such as a nanny, and workers within IR35 off-payroll rules), so read the official page before you claim. Employers whose bill was over £100,000 can claim from April 2025.
Frequently asked questions
How much is the Employment Allowance in 2026-27?
GOV.UK gives £10,500 for 2026 to 2027. It reduces your employer Class 1 NI liability for the year.
Can a one-person limited company claim the Employment Allowance?
GOV.UK says a company where the director is the only employee paying secondary Class 1 NI cannot claim.
Can connected companies each claim it?
No. GOV.UK says only one company in a connected group can claim, and if you run several payrolls you can claim against only one of them.
Does the Employment Allowance cover the Apprenticeship Levy?
No. It is claimed against employer Class 1 NI only, not the levy.
Sources
Checked
- GOV.UK: Employment Allowance
- GOV.UK: Employment Allowance eligibility
- GOV.UK: Rates and thresholds for employers 2026 to 2027
Figures are for the UK 2026 to 2027 tax year unless stated. Runs entirely in your browser. Nothing you type is sent or stored.
Scope
Eligibility is only partly modelled: use the GOV.UK eligibility page to confirm before claiming. General information, not legal, tax or payroll advice. GOV.UK, HMRC and your payroll provider are authoritative.