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You are here: Home » Latest News » Employers cash in with £2,000 NICs saving

Employers cash in with £2,000 NICs saving


New government data has shown that almost a million employers are benefiting from a £2,000 cut in their annual national insurance contributions (NICs) bill.

Figures released on 31 July revealed that 725,000 UK business and charity employers have claimed the Employment Allowance.

HM Revenue & Customs says that more than half of all eligible businesses have claimed the allowance since it was introduced in April this year, resulting in them receiving around £500 million of employer NICs relief.

The Employment Allowance is a reduction in class 1 NICs that an employer pays for their employees, and is worth up to £2,000 a year for eligible businesses and charities.

When the initiative was announced, the government said around 1.2 million organisations could benefit.

More than 90 per cent of those to benefit from the Employment Allowance will be smaller businesses, taking around 450,000 employers out of paying class 1 secondary NICs altogether.

Link: Information on the Employment Allowance

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