The employment allowance announced at Budget 2012, and the proposed extension of the general anti-abuse rule to NICs, feature in the National Insurance Contributions Bill presented to Parliament on 14 October. The employment allowance will be delivered through payroll software and the real time information system, HM Treasury said. Up to £2,000 will be deducted from employers’ NIC liability during the tax year.
David Cameron said the allowance would benefit up to 1.25m businesses and ‘result in around 450,000 businesses seeing their employers’ NIC payments stop completely’. The Treasury’s press release quoted John Allan, national chairman at the Federation of Small Businesses, as saying that FSB members intended to ‘spend the savings on their business, either through investing in the business, increasing wages or taking on staff’. Guidance at employmentallowance.com includes a calculator to enable employers to see ‘the effect on your NICs bill of employing one additional person’.
The employment allowance announced at Budget 2012, and the proposed extension of the general anti-abuse rule to NICs, feature in the National Insurance Contributions Bill presented to Parliament on 14 October. The employment allowance will be delivered through payroll software and the real time information system, HM Treasury said. Up to £2,000 will be deducted from employers’ NIC liability during the tax year.
David Cameron said the allowance would benefit up to 1.25m businesses and ‘result in around 450,000 businesses seeing their employers’ NIC payments stop completely’. The Treasury’s press release quoted John Allan, national chairman at the Federation of Small Businesses, as saying that FSB members intended to ‘spend the savings on their business, either through investing in the business, increasing wages or taking on staff’. Guidance at employmentallowance.com includes a calculator to enable employers to see ‘the effect on your NICs bill of employing one additional person’.
