In order to mitigate some of the cost of the new rate of employer’s NI, the government has increased the amount that can be reclaimed from £5,000 to £10,500.
The government also removed the £100,000 qualification cap, meaning all employers are now eligible to claim the allowance.
Make sure that the option to claim the allowance is enabled in your payroll software (or ask your payroll provider to check) to make sure that you offset some of the increased NI costs that come into defect from 6 April 2025.
The allowance is applied until it is used up, so if your monthly NI bill is £2000 you will get five months NI free and a reduction of £500 to you NI liability in month six.