Research from the Bank of Cyprus UK, which asked 500 owner-managers about the impact of the plan found that 44.2 per cent said while they welcome the cost reduction it will make no real difference to their business , and 30.4 per cent said they were not aware of it at all.
The Employment Allowance will allow eligible businesses to reduce their National Insurance bill by up to 2000.
Tony Leahy at Bank of Cyprus UK commented: At a time when small businesses need Government support to help nurture them through a fragile economic recovery, it is a concern that a significant percentage of businesses are not aware of this initiative.
“When cash flow is tight for businesses, the Employment Allowance presents an opportunity for OMBs to reduce their costs, reinvest the money they save in underfunded areas of their business, or give a boost to salaries for existing staff in order to improve morale and retention.
But 5.4 per cent of those asked said it will help them recruit more staff, 5.2 per cent said they would use it to boost wages and 4.6 per cent said they would use it to invest elsewhere.