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£2000 Employment allowance to boost business

£2,000 employment allowance to boost

business

From April 2014, every business charity and community amateur sports club (CASC) will be entitled to an annual ‘employment allowance’ of £2,000 to reduce their liability for Class 1 secondary National Insurance Contributions (NICs). 

The National Insurance Contributions Bill 2013-14 which contains legislation for the said allowance, was presented to Parliament on 14 October 2013.

The allowance is expected to benefit up to 1.25m businesses and result in around one  third of all employers being taken out of paying NICs altogether.  Over 90 per cent of the benefit of this allowance will go to small businesses with fewer than 50 employees.

In Conjunction with the above, HMRC have published a Tax Information and Impact Note (TIIN) on the said allowance which can be found at http://tinyurl.com/q4m8rev

More details are available from Gov.uk at http://tinyurl.com/m7bd2xd

For further information e-mail one of our partners Tracy Attard at tracya@knightandcompany.co.uk or call 01628 631056.