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Friday
Feb072014

HMRC publishes new guidance for businesses on forthcoming Employment Allowance

HMRC’s new Employment Allowance will be available from April 6, and new guidance for businesses has just been published.

Eligible businesses will be able to save up to £2,000 in National Insurance contributions. Over 1.25m businesses across the country are expected to benefit from the scheme.

The main beneficiaries will be small businesses with fewer than 50 employees. Around 450,000 businesses will no longer need to pay any NICs.

Chancellor George Osborne said: “In exactly two months, businesses across Britain will start benefiting from a cashback on jobs. Worth up to £2,000, every business in the country will see a cut in their National Insurance bill thanks to the Employment Allowance.

This new tax cut is part of our long term economic plan to back businesses investing in jobs. That is how you deliver greater economic security for hardworking people.”

The allowance has been welcomed by the Federation of Small Businesses, as it means that small companies can employ more staff and gives employers room for expansion.

Businesses must opt in to the system, and the new guidance gives businesses more details about how to claim the allowance.

Here at St Matthew we specialise in tax and accountancy advice and services, especially to small businesses and entrepreneurs. Our experts can help you take advantage of all the schemes, such as the forthcoming Employment Allowance, available to businesses in the UK.

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