While much of the news in 2026 has focused on rising costs, there is a significant silver lining for small and medium-sized businesses with a payroll. The Employment Allowance, which allows eligible employers to reduce their annual National Insurance liability, remains a vital tool for business growth.
At CoreAcc Accountants, we are ensuring all our eligible clients are claiming the full £10,500 now available to them for the 2026/27 tax year.
What has changed?
The allowance currently stands at £10,500, a level designed to offset the rising costs of the National Living Wage. Crucially, the government has simplified the rules to ensure that almost all small and mid-sized employers can benefit. You pay less employers’ Class 1 National Insurance each time you run your payroll until the allowance has been used up or the tax year ends.
Is your business eligible?
Most businesses and charities can claim the allowance as long as their employers' Class 1 National Insurance liabilities were less than £100,000 in the previous tax year. It is important to note that you cannot claim if you are a sole director company with no other employees paid above the secondary threshold. However, as soon as you hire your first staff member, this relief becomes a game-changer for your cash flow.
How CoreAcc Accountants Can Help
We make sure you never miss out on the relief you are entitled to. Our payroll experts provide:
● Automatic Claims: We claim the Employment Allowance on your behalf through your monthly RTI submissions.
● Eligibility Audits: If you haven't claimed in the past, we can look back over the last four years and potentially reclaim thousands of pounds for your business.
● Growth Planning: We can model how hiring new staff will interact with your allowance, helping you understand the real cost of expanding your team.
Get in touch with the payroll team at CoreAcc Accountants to find out if you are eligible for this essential tax relief.
