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
- To help establish eligibility, you will first be presented with a checklist to complete - complete this according to your business circumstances.
- 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 '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.
