National Insurance employment allowance
The Government is to introduce an employment allowance of £2,000 per year for all businesses and charities to be offset against their employer Class 1 secondary National Insurance Contributions bill from April 2014. The allowance will be claimed as part of the normal payroll process through RTI.
It is estimated that up to 1.25 million employers will benefit from the allowance. This includes some 450,000 small businesses that will no longer have to pay National Insurance Contributions.
The Chancellor recently visited a number of businesses in Enfield to launch the countdown to the introduction of the employment allowance from April 2014. The Chancellor commented that‘With three months to go until the introduction of the Employment Allowance, I am shining a spotlight on this scheme which demonstrates our support for small businesses and enterprise.’
The Government also recently announced the abolition of employer National Insurance for employees under the age of 21 from April 2015.
If you would like more information regarding this scheme, or advice on claiming the allowance, please call.