What's covered in this guide?:
Employment Allowance (EA)
Employment Allowance (EA) is a government incentive that allows eligible employers to reduce their annual National Insurance (NI) bill by up to £10,500 per year.
Create a New Employment Allowance Claim
To create a new employment allowance claim:
Navigate to: Payroll > Payroll Settings > Employment Allowance Claims
Click '+ Create a New Employemnt Allowance Claim'
Select your Company File
Enter the Amount Already Claimed This Tax Year (enter £0 if this is your first claim for the current tax year)
Do State Aid Rules apply? Select "No", unless your business falls under a sector subject to state aid rules.
Click Create to submit the claim.
Submit the EPS to HMRC
Once you've created the claim, you must submit an EPS (Employer Payment Summary) to apply the allowance.
To submit an EPS:
Go to: Payroll > RTI > EPS (Employer Payment Summary)
Click “+ Submit New EPS”
Submit the EPS to HMRC.
FAQs
Do I need to enter the amount I’m claiming each month?
Do I need to enter the amount I’m claiming each month?
No. Once the claim is set up, your payroll system and EPS submissions handle the allowance automatically.
Do I need to submit an EPS every month to claim Employment Allowance?
Do I need to submit an EPS every month to claim Employment Allowance?
If you have no other reason to submit an EPS (such as reporting statutory payments), you do not need to submit one every month. A single EPS submission at the start of the tax year is sufficient to make your Employment Allowance claim.