This allowance was introduced in 2014/15 to provide a saving of up to £2000 (increased to £3,000 for the 2016/17 tax year, only eligible if the company has employees other than directors) from the Employer’s NI bill of any business.

If the business is liable for Employer’s NI, and wants to use this allowance, Sage Payroll can be set up to operate it automatically.