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.”
Research also finds that 84% of businesses believe that the government has not provided enough information about digital tax plans
A total of £16bn was lost through tax fraud last year, according to estimates released by Pinsent Masons
Additional tax a result of compliance investigations by HMRC, but overall revenue falls
Firm expands East Anglian team with appointments to the audit practice and private client tax team