{"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":"<p>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<p>The Employment Allowance now allows\u00a0<strong><a href=\"https:\/\/www.gov.uk\/claim-employment-allowance\/eligibility\" target=\"_blank\" rel=\"noopener\">eligible 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<p>So, what does this mean for you and your business?<\/p>\n<p><strong>Employment Allowance<\/strong><\/p>\n<p>Due to the increase, smaller companies will be able to reduce their employer National Insurance Contributions (NICs) liability by \u00a35000 per year.<\/p>\n<p>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<p><strong>Who is benefiting the most?<\/strong><\/p>\n<p>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<p>Small and micro-businesses make up 94 per cent of those benefitting from the \u00a31,000 increase.<\/p>\n<p>However, the sectors that are most likely to feel the benefit are:<\/p>\n<ul>\n<li>The wholesale and retail sector (87,000)<\/li>\n<li>The professional, scientific and technical activities industry (63,000)<\/li>\n<li>The construction sector (52,000).<\/li>\n<\/ul>\n<p>The increased allowance will be available through payroll software where this has been updated, or through a payroll adjustment.<\/p>\n<p>You can check if you are eligible to claim Employment Allowance <strong><a href=\"https:\/\/www.gov.uk\/claim-employment-allowance\/eligibility\" target=\"_blank\" rel=\"noopener\">here<\/a><\/strong>.<\/p>\n<p>For help and advice on related matters, please<a href=\"https:\/\/www.moorethompson.co.uk\/mt-pay\/contact-us\/\"><strong> contact our experienced payroll team at MT Payroll<\/strong><\/a>.    \t<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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. The Employment Allowance now allows\u00a0eligible employers\u00a0to reduce their annual National Insurance&#8230;<\/p>\n","protected":false},"author":1,"featured_media":16734,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[5],"tags":[],"class_list":["post-22365","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-payroll-press-articles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Employers are given \u00a31,000 saving thanks to Employment Allowance boost - MT Pay<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.moorethompson.co.uk\/mt-pay\/payroll-press-articles\/employers-are-given-1000-saving-thanks-to-employment-allowance-boost\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Employers are given \u00a31,000 saving thanks to Employment Allowance boost - MT Pay\" \/>\n<meta property=\"og:description\" content=\"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. 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