I was pleased to hear that as many as 1,600 employers in the constituency have taken up Employment Allowance since its introduction in April this year. Employment Allowance is intended to bring down the amount of National Insurance (NI) contributions an employer is required to make. To be eligible you need to be a business or charity (or community amateur sports club) that pays employers’ Class 1 NI. Government estimates indicate that as many as 500,000 small businesses and charities will not have to pay any NI contributions this financial year and for those that do, in real terms this could amount to a reduction of their NI bill by up to £2,000 in each tax year.
It is great news that there has been such a positive uptake of this tax credit by employers. Across the country 856,000 employers have taken advantage of the scheme, which forms part of the Government’s economic plan to support businesses and job creation. For those that wish to find out more about Employment Allowance, they can do so clicking here.