Employment Allowance increases for National Insurance from April 2020



Announced in the budget, the maximum Employment Allowance will be increasing from £1,000 to £4,000 from April 2020. This means eligible businesses and charities will be able to claim a greater reduction on their Secondary Class 1 National Insurance contributions liability.


This measure supports businesses by providing relief of up to £4,000 on their employer secondary Class 1 National Insurance Contributions liabilities. This is expected to reduce around a further 65,000 businesses’ National Insurance Contributions bill to £0, and further allow small, growing enterprises to take on staff without incurring additional National Insurance Contributions liabilities.


This is in addition to the 590,000 businesses whose National Insurance Contributions bill is effectively reduced to nil under the current level of the Employment Allowance.


Sources: GOV.UK