{"id":22365,"date":"2022-05-31T08:55:08","date_gmt":"2022-05-31T08:55:08","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/?p=22365"},"modified":"2022-05-31T08:55:08","modified_gmt":"2022-05-31T08:55:08","slug":"employers-are-given-1000-saving-thanks-to-employment-allowance-boost","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/mt-pay\/payroll-press-articles\/employers-are-given-1000-saving-thanks-to-employment-allowance-boost\/","title":{"rendered":"Employers are given \u00a31,000 saving thanks to Employment Allowance boost"},"content":{"rendered":"

Announced by the Chancellor in the Spring Statement last month, changes to the employment allowances worth up to \u00a31,000 for eligible small businesses, came into effect on 6 April.<\/p>\n

The Employment Allowance now allows\u00a0eligible employers<\/a><\/strong>\u00a0to reduce their annual National Insurance liability by up to \u00a35,000 \u2013 up from \u00a34,000 \u2013 helping nearly half a million businesses in the UK to cut their NIC bills.<\/p>\n

So, what does this mean for you and your business?<\/p>\n

Employment Allowance<\/strong><\/p>\n

Due to the increase, smaller companies will be able to reduce their employer National Insurance Contributions (NICs) liability by \u00a35000 per year.<\/p>\n

The allowance is available to businesses if their NICs bills were \u00a3100,000 or less in the previous tax year and where there are two or more employees on their payroll.<\/p>\n

Who is benefiting the most?<\/strong><\/p>\n

In a bid to reduce employment costs, the change allows an additional 50,000 businesses to get out of paying NICs and the Health and Social Care Levy, according to the Government. As a result, the total number of businesses not paying NICs and the Levy will rise to 670,000.<\/p>\n

Small and micro-businesses make up 94 per cent of those benefitting from the \u00a31,000 increase.<\/p>\n

However, the sectors that are most likely to feel the benefit are:<\/p>\n