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.”
Lord Howard Leigh of Hurley discusses the government’s initiatives to mitigate tax avoidance and evasion
Top 50+50: Demand for tax advisory services remains high, but fee pressure is expected in relation to compliance services
The demand for tax advisory services remains high and this looks to continue; but fee pressure is expected in relation to compliance services as the “Making Tax Digital” initiative is rolled out,
While some resistance to change is to be expected, the degree of controversy surrounding HMRC's Making Tax Digital proposals has surprised the government
Kevin Reed discusses the worrying findings from HMRC on micro-businesses' problems handling Real-Time Information, and the latest thoughts on how accountants can provide value-added services