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Claiming & Stopping Employment Allowance

Bright Support
  • Updated

Claiming the Employment Allowance in BrightPay

If you establish that you are eligible to claim the employment allowance in tax year 25-26, you will need to submit an Employer Payment Summary (EPS) submission via RTI, to notify HMRC that you are claiming the employment allowance.


To prepare an EPS for submission you must first set up your HMRC Payments schedule.

  • Choose HMRC Payments
  • Choose the agreed payment frequency between you and HMRC - monthly or quarterly
  • Under NIC, you will find the option for Employment Allowance Claim
  • To claim the Employment Allowance, select Enable

 

 

 

  • Where it is established that you are eligible to claim the employment allowance, the claim for the employment allowance is made via an EPS. Simply click Prepare an EPS:

 

  • The Employment Allowance section on the Employer Payment Summary will now be available for you to complete.
  • a) Under Eligibility, indicate that the employer is eligible for Employment Allowance
  • Click OK to submit to HMRC.

 

 

  • Once the EPS has been submitted and accepted by HMRC, click back into HMRC Payments and click the Enable button again.
  • Answer the question accordingly and click I've sent an EPS.

 

 

  • Answer the question accordingly and click OK

 

 

  • The Employment Allowance will now be automatically calculated in line with the employer's Class 1 National Insurance liability each tax period, up to the maximum total of £10,500 in the tax year.

 

 

 

If you are not eligible for the Employment Allowance

 

HMRC can be notified of your ineligibility for the employment allowance via the Employment Payment Summary (EPS).

 

  • Select RTI on the menu bar
  • Click 'New' on the menu toolbar and select 'Employer Payment Summary (EPS)'

 

 

  • Tick the 'Employment Allowance' marker
  • Select 'Indicate that employer is not eligible for Employment Allowance':
  • Click 'OK' to submit to HMRC when ready.

 

 

Please note: an employer is either eligible or not eligible for the entire tax year. If an employer becomes eligible during the tax year, then all previous periods will now be eligible. Likewise, if an employer becomes ineligible during the tax year then all periods where the employment allowance was credited to the account will be undone at HMRC and the employer NIC will be liable for the whole tax year.