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What is Employment Allowance?

Glossary definition

What is Employment Allowance?

This allows employers and charities to claim back up to £3,000 every tax year from their employers’ Class 1 National Insurance (NIC). Sage HMRC recognised RTI payroll software makes RTI compliance simple for employers and charities.

This means that if you pay less than £3,000 in a tax year, you won’t need to pay any Class 1 NIC.

You can only claim Employment Allowance for one PAYE scheme.

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