National insurance cut boost for small businesses
Small business owners should seek advice to see if they will be exempt from paying employers’ National Insurance Contributions (NIC) when new measures come into force.
From April 2014, all businesses in the UK will have their NIC reduced by up to £2,000, under changes announced by Chancellor George Osborne in his 2013 Budget, which could see up to a third of all employers not having to make any contributions at all.
The 'Employment Allowance', as it will be known, will also apply to charities and community sports clubs. According to the Treasury, the change will be applied through standard payroll software.
This will come as good news to many small businesses, who could find that they no longer have to make employer contributions at all after April 2014.
If all goes to plan, the Employment Allowance should remove a significant financial hurdle for new business owners wanting to take on their first employee. If you are a business owner, or are planning to set one up, it might be a good idea to seek professional advice to see how this change will affect you.
For further information, please contact Tim Preece at the office.
Author: Tim Preece FCCA
A former pupil at Lancaster Royal Grammar School, Tim joined Scott & Wilkinson in 1992 as a trainee after completing a degree in Maths and Economics at Leeds University and qualified as an Accountant in 1996. Tim was...
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