Employment Allowance: Can You Claim After the Tax Year Has Started?

Q. A Client did not Tell us that they were Eligible for the Employment Allowance in Tax Year 2023/24 (Despite us Asking for Confirmation!). After the July Payrun, they did tell us. Can We Indicate to HMRC that they are Eligible Even though the Tax Year is Well Underway?

A: Yes! Employers can claim the Employment Allowance going back 4 tax years, though only 1 through the payroll. Simply, in the next payrun, tick the Employment Allowance claim indicator in your software for the next submission of the Employer Payment Summary (EPS) and HMRC will apply the Allowance for the whole of the current tax year. The employer, though, will only notice that you have done this when they look at the National Insurance liability in the next payrun.

Do check the eligibility criteria on Gov.UK. Not all employers are eligible (and you will need to indicate their business sector on the EPS as well).

 

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