National Insurance giveaway will boost small employers
20 March 2013
Graham Farquhar, Employment Tax Partner at EY comments:
“There will be a £1.75bn National Insurance Contribution (NIC) giveaway by the Chancellor, which will come as a huge boost to small employers. Almost a third of all employers will no longer pay any Employers NI.
“In the past the Chancellor has provided NIC holidays for employers in certain parts of the country. This time round, the £2,000 employment allowance will be available to all employers to offset against their Employer National Insurance Contributions bill.
“This will mean a business with one employee, earning the average salary of £26,500 per annum, will have their employers NIC bill reduced to £600 next year compared to £2,600 this year.
“This will be claimed through the new Real Time Information (RTI) regime which comes into effect for most employers on 6 April.”