27 June 2023

HM Revenue and Customs (HMRC) has released some statistics relating to Employment Allowance (EA) which are interesting and serve as a reminder to businesses who could be claiming this important support.

Across the country 1,171,000 employers are claiming the allowance, with 202,000 of those being within London, this is 17% of the total claimants.

Unsurprisingly, 85% of employers claiming EA are ‘micro’ employers, with between one and nine employees.

From April 2020, EA was restricted to companies with an employer National Insurance liability below £100,000 for the previous tax year. This saw a drop in claiming employers, however, this is slowly climbing back up with an increase of 2% from 2021/22.

Check out the guidance for Employment allowance to check employer eligibility. If you or a client are a small employer, the relief can be a huge benefit to you or a clients business, £5,000 per year is nothing to be sniffed at.

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