The employment allowance reduces the amount of employer’s NIC which is payable to HMRC.
On 6 April 2016 the employment allowance increases from £2,000 to £3,000 per employer, but one-person companies who have no employees other than the single director will no longer be eligible to claim the allowance.
From April 2017 an employer will be barred from claiming the employment allowance if it has suffered a penalty for employing illegal workers.
