{"id":4646,"date":"2022-04-08T15:49:56","date_gmt":"2022-04-08T15:49:56","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=4646"},"modified":"2022-04-08T15:49:57","modified_gmt":"2022-04-08T15:49:57","slug":"employers-given-1000-saving-thanks-to-rise-in-employment-allowance","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/employers-given-1000-saving-thanks-to-rise-in-employment-allowance\/","title":{"rendered":"Employers given \u00a31,000 saving thanks to rise in Employment Allowance"},"content":{"rendered":"<p>First announced by the Chancellor in the Spring Statement, changes to the Employment Allowance, worth up to \u00a31,000 for eligible small businesses, came into effect on 6 April.<\/p>\n<p><!--more--><\/p>\n<p>The Employment Allowance now allows\u00a0<a href=\"https:\/\/www.gov.uk\/claim-employment-allowance\/eligibility\">eligible employers<\/a>\u00a0to reduce their annual National Insurance liability by up to \u00a35,000 \u2013 up from \u00a34,000 \u2013 helping nearly half a million businesses in the UK to cut their bill.<\/p>\n<p>So, what does this mean for you and your business?<\/p>\n<p><strong>Employment Allowance<\/strong><\/p>\n<p>Due to the increase, smaller companies will be able to claim up to \u00a35,000 off their employer National Insurance Contributions (NICs).<\/p>\n<p>This applies if the NICs bills were \u00a3100,000 or less in the previous tax year.<\/p>\n<p>In a bid to reduce employment costs, the change allows an additional 50,000 businesses to get out of paying NICs and the Health and Social Care Levy.<\/p>\n<p>As a result, the total number of businesses not paying NICs and the Levy will rise to 670,000.<\/p>\n<p>They will also be able to employ four full-time employees on the National Living Wage without paying any employer NICs whatsoever.<\/p>\n<p>The Chancellor, Rishi Sunak, commented on the changes:<\/p>\n<p>\u201cThis tax cut for half a million businesses will help them thrive and grow to help drive our economic recovery.<\/p>\n<p>\u201cIt comes on top of a suite of wider tax cuts available to firms, including 50% business rates relief, a record fuel duty cut and the super-deduction, the largest two-year business tax cut in our history.\u201d<\/p>\n<p><strong>Who will benefit?<\/strong><\/p>\n<p>Small and micro businesses make up 94 per cent of those benefitting from the \u00a31,000 increase.<\/p>\n<p>The sectors that will feel the most positive impact are:<\/p>\n<ul>\n<li>The wholesale and retail sector (87,000)<\/li>\n<li>The professional, scientific and technical activities industry (63,000)<\/li>\n<li>The construction sector (52,000).<\/li>\n<\/ul>\n<p>The increased allowance will be available through payroll software where this has been updated, or through a payroll adjustment.<\/p>\n<p>Check if you are eligible to claim for Employment Allowance <a href=\"https:\/\/www.gov.uk\/claim-employment-allowance\/eligibility\">here<\/a>.<\/p>\n<p><strong>For help and advice on related matters please contact our expert team.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>First announced by the Chancellor in the Spring Statement, changes to the Employment Allowance, worth up to \u00a31,000 for eligible small businesses, came into effect on 6 April.<\/p>\n","protected":false},"author":2,"featured_media":4648,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,31,27],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4646"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=4646"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4646\/revisions"}],"predecessor-version":[{"id":4647,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4646\/revisions\/4647"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/4648"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=4646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=4646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=4646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}