An estimated 137,000 business owners in the North West will be able to benefit from a new government initiative which allows employers to reduce their National Insurance costs by up to £2,000 a year.
The new Employment Allowance will be introduced on Sunday 6th April and will mean 53,000 businesses in the region will no longer have to pay any employer National Insurance contributions at all as they usually pay less than £2,000 annually.
In a letter to employers, Prime Minister David Cameron said:
“Businesses are saying to us they want to invest, grow, and take on new people. The Employment Allowance is about helping you to do that, whether you are taking on your first employee or your fiftieth.
“The Allowance will cut up to £2,000 from your employer NICs bill. This means £2,000 cashback on the cost of jobs that you can choose how to spend. I hope you will consider using it to take on more employees.
“The Employment Allowance starts on 6th April. I urge you to sign up so that you can benefit from a cut in the cost of employing someone and help to grow our economy.”
Up to 1.25 million businesses and charities will benefit from Employment Allowance across the UK and around 450,000 businesses and charities won’t have to pay any employer National Insurance contributions at all.
Nearly all employers that pay Class 1 National Insurance contributions on their employees’ and directors’ earnings will be eligible including businesses, charities and community amateur sports clubs
• Employers can use an online calculator to see how they could benefit