Claimable Allowances for Employers

There are several allowances that employers can claim back though their PAYE payments.

Apprenticeship Allowance – All public, private and voluntary sector employers with an annual pay bill of more than £3m can claim up to £15000.

The pay bill is any payment subject to Employer Class 1 NIC (wages, bonus, commissions, etc) and includes:

  1. Employee earnings which fall below the LEL and ST
  2. Payments made to under 21’s
  3. Apprentices under 25

Employment Allowance – This allowance will reduce your employers’ Class 1 National Insurance amount until the £3000 amount has been reached. You can claim Employment Allowance if you’re a business or charity (including community amateur sports clubs) paying employers’ Class 1 National Insurance. You can also claim if you employ a care or support worker.

If you have more than one employer PAYE reference, you can only claim Employment Allowance against one of them.

Statutory Payments – All employers can claim back at least 92% of the Statutory Maternity, Paternity, Adoption and Shared Parental Pay given to employees. However, employers who pay less than £45,000 in Class 1 National Insurance Contributions in the previous tax year can claim back 103% of the payments.

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