Government Incentive Launched to help reduce National Insurance Liability

This month sees the introduction of a Government initiative called the Employment Allowance which will enable many businesses to reduce their Employer’s National Insurance contributions by up to £2000.


The government has announced this measure in an effort to reduce the costs that businesses face when employing staff.  Over 90 per cent of the benefit will go to small businesses with fewer than 250 employees, with the aim of encouraging employment of their first member of staff, or to help increase their workforce.  For example, businesses will be able to employ ten 18-20 year-olds who receive the National Minimum Wage on a full-time basis, without having to pay Employer’s NIC.  Alternatively, a business could employ their first member of staff and pay them up to £22,400 without paying any Employer’s NIC at all.

Mitchell Charlesworth Payroll Services can make this claim on your behalf and help you reduce your NIC liability by submitting an Employers Payment Summary (“EPS”) to HMRC. There are of course exemptions to eligibility and so we would encourage employers to act promptly and contact our Director of Payroll Services Ken Davies by calling 0151 423 7500 or by email to find out whether your business is eligible to claim the relief.

You can read more about the Employment Allowance as well as other opportunities for both you and your business in our expert guide “Seize the Day”, which can be read here.


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