Raising Finance

HMRC publishes new guidance ahead of £2k cashback on jobs

1 min read

07 February 2014

HM Revenue & Customs has published a new guidance for businesses, two months ahead of its Employment Allowance introduction.

The forthcoming allowance, available from 6 April 2014, is worth up to £2.000 off the employer’s NIC contribution bill for over 1.25m businesses across the country. 

An estimated 450.000 businesses will stop paying NICs altogether, as 90 per cent of the benefit will go to small businesses employing less than 50 people. 

Chancellor George Osborne said: “In exactly two months, businesses across Britain will start benefiting from a cashback on jobs. Worth up to £2,000, every business in the country will see a cut in their National Insurance bill thanks to the Employment Allowance.

This new tax cut is part of our long term economic plan to back businesses investing in jobs. That is how you deliver greater economic security for hardworking people.”

John Allan, National Chairman of the Federation of Small Businesses (FSB) added: “The FSB called for help so that firms could take on more staff and this scheme means many won’t pay any NICs at all. Compared with a year ago, small businesses are employing more staff and are looking to expand in the near future. This points to growing confidence from the UK’s small firms.”

The new guidance provides businesses with more information on how to claim the allowance.

Image source