National Insurance Cut to Boost Jobs
The Chancellor of the Exchequer has announced companies in the UK are to get up to £2,000 off their National Insurance Contributions (NIC) in an attempt to boost job creation.
Aimed at small firms, George Osborne said that when the change starts next April, “one third of all employers” will not have to make any NI payments. He described it as “the largest tax cut in the Budget”.
NI payments go towards a number of benefits, including the state pension. The change is being called the Employment Allowance, which the chancellor described as “taking a tax off jobs”.
To take advance of the allowance, firms will simply have to inform HM Revenue & Customs, and the Treasury says it will be “delivered through standard payroll software”.
Mr Osborne added, “For the person who’s set up their own business, and is thinking about taking on their first employee – a huge barrier will be removed. They can hire someone on £22,000, or four people on the minimum wage, and pay no jobs tax.”
