Employment Allowance reduces an employer's NI bill. Most businesses can claim it, but single-director companies with no other employees are excluded.
Estimates for the 2026-27 tax year (England, Wales & Northern Ireland). Assumes a standard tax code, Class 1 NI, and auto-enrolment pension on qualifying earnings (£6,240–£50,270). Rates and thresholds are frozen until April 2028. Not a substitute for professional advice.
Take-home is gross pay less Income Tax, National Insurance and your pension contribution. We apply 2026-27 thresholds, taper the personal allowance above £100,000, and split Income Tax across the basic, higher and additional rate bands. The employer side adds Class 1 secondary NI (15% above £5,000) and the 3% employer pension, with an optional Employment Allowance offset.
The true cost of employing you: your gross salary plus employer's National Insurance (15% on pay above £5,000) and the 3% employer pension contribution.
A relief of up to £10,500 a year that most businesses can deduct from their employer NI bill. Single-director companies with no other staff can't claim it.
Auto-enrolment minimums on qualifying earnings (£6,240–£50,270): 5% from you, 3% from your employer. Toggle it off if you're not enrolled.
Not yet — Scottish income tax bands differ. This uses England, Wales & NI rates.