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.
Find out whether you’re eligible for the Employment Allowance and how to claim
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.