Increase in Employment Allowance

The measure

The Chancellor announced in the Spring Statement an increase in the Employment Allowance from £4,000 to £5,000 per year, from 6 April 2022. Eligible employers will be able to reduce their employer National Insurance Contributions bill by up to £5,000 per year.

Who will be affected?

Small businesses and eligible employers, which are defined as businesses or charities with employer’s Class 1 National Insurance Contribution liabilities of less than £100,000 in the previous tax year.

When will the measure come into effect?

From 6 April 2022.