North East Businesses Could Be Missing Out on £10,500 in National Insurance Relief, Warns Azets
- gracebell7
- Oct 7
- 2 min read
Larger employers across Durham and the wider North East region are being urged to review their National Insurance (NI) claims, as many may be missing out on thousands of pounds in available tax relief, according to leading international advisory firm Azets.
Azets, an international business advisory group with regional offices in Durham, Newcastle and Wynyard, has highlighted that eligible businesses could reduce their annual Class 1 NI liability by up to £10,500 through the Employment Allowance — but only if they actively claim it.
Julie Gunnell, Associate Director of Payroll Growth at Azets, who supports businesses across the North East, said “This allowance has become even more valuable since employer NI rates were increased to 15% and the cap preventing employers with over £100,000 in NI liabilities from claiming was removed – but businesses can’t benefit from it if they don’t take action. Firms in and around Durham and the North East could be leaving more than £10,000 on the table by not actively claiming what they’re entitled to."
The Employment Allowance is available to eligible employers who do not carry out more than 50% of their work in the public sector and now includes those with annual NI liabilities over £100,000 — a recent change introduced for the 2025/26 tax year.
James Dawson, Partner in Accountancy and Business Advisory Services (ABAS) at Azets, added “We are seeing many of our larger clients miss making a claim for this relief, which is worth £10,500 to them and provides a welcome offset to help with rising operational costs.
“Perhaps with the announcement being made in October 2024, in advance of the change for this 2025-26 tax year, together with the fact larger employers have always been ineligible due to the NIC liability cap, it isn’t surprising that many firms have just simply overlooked it.”
Azets is also advising businesses within corporate groups to be mindful of connected company rules under HMRC guidance, which state that only one company within a connected group can claim the allowance, regardless of whether the companies remain connected for the full tax year.
Gunnell added “We often see businesses make the mistake of assuming each company can claim independently. It’s vital to understand the connected company rules and coordinate internally, so only one entity makes a claim and other companies in the group aren’t at risk of making errors or incurring unnecessary penalties.”
With the financial year at its halfway point, Azets recommends all eligible businesses reassess their NI position and make their claims through payroll software or directly via HMRC.
