Member Article

31k Yorkshire & Humber businesses will not have to pay National Insurance contributions

Some 31,000 employers across Yorkshire and the Humber region will be affected by the start of the Employment Allowance, and will not have to pay National Insurance Contributions.

For other businesses, employers will be able to reduce the amount of National Insurance contributions they pay for their employees by up to £2,000.

Employers won’t have to pay any employer National Insurance contributions at all if they usually pay less than £2,000 a year.

Up to 1.25 million businesses and charities will benefit from Employment Allowance and around 450,000 businesses and charities won’t have to pay any employer National Insurance contributions at all.

Around one third of all employers, some 450,000, will be taken out of paying employer NICs altogether (including that 31,000 from the Yorkshrie & Humber region)

It is predicted that over 90% of the benefit of this allowance will go to small businesses with fewer than 50 employees.

Businesses will be able to employ four adults or ten 18-20 year-olds full-time on the current National Minimum Wagewithout paying any employer NICs at all.

Nearly all Employers that pay Class 1 National Insurance contributions on their employees’ and directors’ earnings will be eligible including businesses, charities, and community amateur sports clubs.

Employers can use an online calculator to see how they could benefit here.

Michael Clark, Treasurer of Yorkshire-based national charity Heart Research UK, welcomed the Allowance. He said: “We obviously welcome anything that helps us to reduce the cost of running our charity which will mean more of our funding can go towards the work we do in the prevention, treatment and cure of heart disease.”

The PM has written to businesses saying: “The new Employment Allowance could take £2,000 off your employer National Insurance Contributions (NICs).

“Britain has been through some very tough years. We endured one of the biggest bank bailouts in the world and the deepest recession in generations.

“For businesses and charities like yours, on the frontline of the economy, we know it has been especially difficult.

“We came into Government with a long term economic plan to rescue the economy.

“Thanks to your hard work, we are now seeing the results. A private-sector recovery with the economy growing, jobs being created, and confidence reaching new highs.

“Businesses are saying to us they want to invest, grow, and take on new people. The Employment Allowance is about helping you to do that.

“The Allowance will cut up to £2,000 from your employer NICs bill. This means £2,000 cashback on the cost of jobs that you can choose how to spend. I hope you will consider using it to take on more employees.

“Around 1.25 million businesses employing someone will benefit from the Allowance, whether you are taking on your first employee or your fiftieth.

“A third of all employers will see their NICs bill abolished. The Employment Allowance starts on 6 April. I urge you to sign up so that you can benefit from a cut in the cost of employing someone and help to grow our economy.

This was posted in Bdaily's Members' News section by Clare Burnett .