How to Stop Claiming Employment Allowance

Implications of Stopping Your Claim Early

If you decide to stop claiming Employment Allowance before the end of the tax year (5 April), be aware of the following consequences:

• Removal of Granted Allowance:
• Any EA you have been granted for the year will be removed.

• Repayment of Employer’s Class 1 National Insurance:
• You will be required to pay back any employers’ (secondary) Class 1 National Insurance Contributions (NICs) that were previously covered by the EA.

When Not to Stop Claiming

Do not select ‘No’ in the Employment Allowance indicator field for the following reasons:

• Reached the £5,000 Limit:
• If you have reached the £5,000 EA limit before the end of the tax year, this does not make you ineligible to continue claiming.

• No Longer Employing Anyone:
• If you are no longer employing anyone, do not stop your EA claim manually. The allowance will cease automatically at the end of the tax year without any action required on your part.

When to Stop Claiming

You may need to stop claiming Employment Allowance (EA) if your eligibility status changes to ineligible. To stop your claim, follow these steps:

1. From the home screen, click on the "Company" section in the left-side menu, and then click on the "Allowances" subsection.
2. You will see a box labeled "Employment Allowance" with a button.

• Click on "Stop" button.
• If the button says "Enable," then Employment Allowance is off.

3. A popup will open:

• Confirm that you wish to stop by clicking on "Stop" button.

References

For more information, visit the UK Government's Employment Allowance page.

Updated on: 27/10/2024