ICAS: Cut national insurance contributions for young people
ICAS urges George Osborne to cut NICs for 16 to 25-year olds in Wednesday's Budget to make it cheaper for employers to hire young people
CHANCELLOR GEORGE Osborne should announce cuts in national insurance contributions (NICs) for 16 to 25 year-olds in Wednesday’s Budget to help tackle record levels of youth unemployment by making it cheaper for employers to hire younger employees, the Institute of Chartered Accountants of Scotland (ICAS) said.
A reduction in NICs for an 18 year-old on the minimum wage would result in approximately £400 a year savings for the employer, ICAS said.
Elspeth Orcharton, assistant tax director with ICAS, said: “With unemployment levels still a concern, a reduction in NIC is an idea that should be explored in the Budget. It would be a targeted and simple measure, providing a cash incentive for employers.”
Increasing the personal allowance threshold when people start to pay tax to £10,000 would be a “welcome measure to keep money in household pockets instead of the tax pockets”, ICAS added.