Both the small employers relief and the employment allowance settings are switched off by default. If the business is eligible for either go to: Payroll Settings > Business Settings > HMRC Settings. From this screen you will see the following settings:
Click the radio button to apply the setting required for small employers relief.
For employment allowance select the tax year you are claiming for. You then need to select the state aid sector you operate in (you can select more than one) or if state aid rules do not apply. More information can be found here.
The allowance will be picked up when you submit the EPS, for more information on submitting the EPS click here. This will only get sent once for the year and will only be included in the first EPS you send for the tax year.
If you have any questions or feedback, please let us know via email@example.com.