Employment Allowance Calculator UK: 2026–27
Estimate how much of the £10,500 Employment Allowance can offset eligible employer Class 1 National Insurance, assuming you qualify to claim.
Your inputs
Your result
Enter your values, then choose Calculate.
Potential saving assumes eligibility has been verified. This is not a claim submission.
Calculation breakdown
Method, assumptions and worked example
Potential allowance used = the smaller of £10,500 and the eligible secondary Class 1 National Insurance liability entered. Remaining eligible NIC = liability minus allowance used. An unused allowance is not a cash refund of the unused limit.
Worked example
If verified eligible NIC is £15,000, the modeled reduction is £10,500 and remaining eligible NIC is £4,500. With £4,000 liability, the modeled reduction is £4,000, leaving £6,500 unused.
Check eligibility before calculating
HMRC eligibility rules cover employer type, public-sector work, connected companies, multiple payrolls and exclusions. A limited company whose only employee liable for secondary Class 1 NIC is its director is generally excluded. Verify the full guidance, including exceptions; this tool cannot make that legal determination from a couple of questions.
Use eligible employer NIC, not employee deductions, total payroll or Class 1A/1B charges. This is an annual planning calculation for 2026–27; it does not submit an Employer Payment Summary or reconcile payroll records.
Frequently asked questions
Does this tool approve an Employment Allowance claim?
No. You must verify eligibility and claim through the appropriate payroll process.
What if liability is below £10,500?
The modeled saving is limited to eligible liability; the remaining allowance is unused.
Sources and review
Formula and content reviewed on 9 October 2026. Examples are hypothetical. Tax years and model limits are stated above; this page does not receive live rates.