Last week Chancellor Rishi Sunak divulged information regarding the health of the UK economy in his Spring Statement update.
In April 2020, the Government increased the employment allowance from £3,000 to £4,000.
Sunak revealed that the Government is providing a long-awaited expansion of this support to small businesses, by increasing the employment allowance from £4,000 to £5,000 per year, which will save employers an extra £1,000 in NICs.
The £1,000 increase allows employers to save more and will benefit around 495,000 businesses, including 50,000 that will become exempt from paying NICs and the health and social care levy entirely.
In total, the Government expects 670,000 businesses to pay no NICs and the health and social care levy, as a direct result of the employment allowance.
For a more extensive overview please view our full report on the Spring Statement 2022.
We will also continue to publish bite-size breakdowns of our report this week, so be sure to stay tuned throughout.
Talk to our highly skilled team of accountants today to find out how these changes could affect you and your business.
Simply call 01254 589799.