Osborne proposes tax cuts for fledgling companies
Shadow Chancellor has announced that a future Conservative government would give start-ups relief on employer NI contributions
New companies will be in line for relief on their employer National Insurance
contributions if the Conservatives come into power.
Shadow Chancellor George Osborne announced that a future Conservative
government would exempt start-ups from paying employer NI contributions,
presently 11% up to the upper earnings threshold of £844 per week, on the first
ten employees it hires during its first year,
This would only apply for the opening two years of a Tory tenure.
According to Osborne, the tax break will encourage new entrepreneurs and
would generate around 60,000 additional jobs over two years.
However, the Labour government has dismissed the proposed tax break as a ”
gimmick” while the Liberal Democrat party warned that the move could give new
firms an unfair competitive advantage over their more established rivals.