TaxCorporate TaxGovernment to make £200 tax cut per employee

Government to make £200 tax cut per employee

The government is to wipe out up to £2,000 off employer's National Insurance

Government to make £200 tax cut per employee

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.”

Related Articles

Q&A with the Financial Secretary to the Treasury

Corporate Tax Q&A with the Financial Secretary to the Treasury

4m Emma Smith, Managing Editor
Government looks to close tax loophole on staff benefits

Corporate Tax Government looks to close tax loophole on staff benefits

1y AccountancyAge staff
Budget 2016: Bittersweet budget paves the way for sugar tax

Corporate Tax Budget 2016: Bittersweet budget paves the way for sugar tax

2y Chris Warmoll, Writer
Knight's suitability as OTS chief questioned by MPs

Corporate Tax Knight's suitability as OTS chief questioned by MPs

2y Fraser Simpson, Reporter
Macpherson to leave Treasury after 10 years in Permanent Secretary role

Corporate Tax Macpherson to leave Treasury after 10 years in Permanent Secretary role

2y Chris Warmoll, Writer
Budget 2016: More HMRC staff and £71m promised to boost digital tax roll-out

Corporate Tax Budget 2016: More HMRC staff and £71m promised to boost digital tax roll-out

2y Chris Warmoll, Writer
Tax breaks needed to save UK oil industry, urges trade body

Corporate Tax Tax breaks needed to save UK oil industry, urges trade body

2y Fraser Simpson, Reporter
Treasury Select Committee to lead review of UK tax system

Corporate Tax Treasury Select Committee to lead review of UK tax system

2y Calum Fuller, Reporter