THE GOVERNMENT is to deliver a saving of £200 per employee with the introduction of the employment allowance in April.
The allowance will also wipe out up to £2,000 off businesses’ total National Insurance, with Treasury figures showing that the cuts will save nearly £5.5bn per year for employers by the end of the parliament.
Alsongside the allowance, National Insurance for employees under the age of 21 will be abolished from April 2015, while the threshold will be raised before a business starts paying National Insurance for an employee in April, which reversed the most damaging part of the increase in the employer NICs rate, under inherited plans.
Chancellor George Osborne said: “Small businesses make a vital contribution to our economy, creating jobs and stimulating growth. The ones I have visited today want to expand, take on new staff and make new investments, so the actions we have taken to cut the jobs tax will be a real boost to them. Effectively providing cashback on jobs, the employment allowance will help these businesses achieve their goals and help the UK succeed in the global race.”
CIot urges HMRC to consider a delay to the 1 September 2017 introduction of its new corporate offence of failure to prevent the criminal facilitation of tax evasion
The current business rates system is over-complex and reform is needed, but reforms should focus first of all on simplifying the appeals process, particularly for businesses which are subject to business rates exemption
The CIoT has called on the government to rethink its approach to ensuring online sellers pay the correct amount of VAT.
Jane Ellison to serve as 'tax minister' following ministerial responsibilities for public health. David Gauke become chief secretary to the Treasury