Can I Claim Employment Allowance for Previous Years?
If your business was eligible for Employment Allowance but didn't claim it, you may still be able to claim it for previous tax years.
In fact, HMRC allows eligible businesses to make a claim for up to four tax years after the end of the tax year the allowance relates to.
So, if you think your business has missed out, it could be worth checking your previous payroll records.
What Is Employment Allowance?
Employment Allowance helps eligible employers reduce the amount of employer Class 1 National Insurance contributions (NICs) they have to pay.
For the 2026/27 tax year, eligible employers can reduce their employer National Insurance bill by up to £10,500.
The amount you can actually benefit from depends on how much eligible employer National Insurance you owe. For example, if your employer NICs were £3,000, you could only benefit by up to £3,000 – even if the maximum allowance for that year was higher.
How Far Back Can I Claim?
You can claim Employment Allowance for the previous four tax years, provided your business was eligible during the year you're claiming for.
For example, Employment Allowance for the 2022/23 tax year can be claimed up until 5 April 2027.
The maximum allowance available was:
- 2022/23 – £5,000
- 2023/24 – £5,000
- 2024/25 – £5,000
- 2025/26 – £10,500
However, the amount you're entitled to will depend on your employer National Insurance liability for each year.
Was My Business Eligible?
This is where it can get a little more complicated because Employment Allowance rules have changed over the years.
For example, for claims relating to 2024/25 or earlier, businesses generally needed to have employer Class 1 National Insurance liabilities of less than £100,000 in the previous tax year.
This £100,000 limit was removed from April 2025.
There are also other restrictions. For example, a limited company cannot claim if its only employee liable for employer Class 1 National Insurance is also the company's only director.
Rather than trying to work through the rules yourself, we can check your circumstances and establish whether your business qualified in each tax year.
How Do I Claim for a Previous Year?
Claims are made through payroll by submitting an Employer Payment Summary (EPS) to HMRC.
If you're claiming for more than one previous tax year, a separate EPS needs to be submitted for each year.
What If I've Already Paid the National Insurance?
You haven't necessarily missed out.
If you've already paid your employer National Insurance for the period, HMRC may use the Employment Allowance you're owed against PAYE or other tax and National Insurance liabilities.
This can include liabilities such as Corporation Tax or VAT where applicable.
If you don't owe HMRC anything, you can ask HMRC for a repayment.
Remember, you can only benefit up to the amount of eligible employer National Insurance you actually paid for that tax year.
Think You Might Have Missed Out?
If you've employed staff and paid employer National Insurance but haven't claimed Employment Allowance, it's worth checking whether your business was eligible.
Blue Rocket Accounting can do this for you.
We can review your previous payroll records, check your eligibility for the relevant tax years and identify whether there's any Employment Allowance available to claim.
And with Blue Rocket, you'll have a dedicated team with direct access via mobile and WhatsApp, plus unlimited support whenever you need us.
Think you could have Employment Allowance waiting to be claimed? Get in touch with Blue Rocket Accounting and we'll help you find out.
This article provides general information based on HMRC guidance available at the time of writing and should not be treated as personalised tax advice. Eligibility depends on your circumstances and the rules applicable to the relevant tax year.
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