80,000 South West employers benefit from Employment Allowance
New data released today reveals how over 850,000 UK employers are benefitting from the Employment Allowance, with 80,000 businesses benefitting in the South West.
The Employment Allowance is a reduction in National Insurance Contributions (NICs) that an employer pays on their employees, and is worth up to £2,000 for eligible businesses and charities.
Within the first six months of its launch 80,000 employers across the region had benefitted from the Employment Allowance. This number is expected to increase throughout the remainder of the tax year.
Announced at Budget 2013, the allowance is simple to claim and easy to administer. Businesses simply confirm their eligibility for the allowance through their regular payroll processes.
The new data coincides with a recent survey by the FSB amongst small businesses about the allowance which found that many small businesses have used it to invest in staff. 18% have used it to increase wages, 17% to hire additional staff, 12% for training, and 8% for more staff hours for current staff.
18% of small businesses surveyed have used it to invest in their businesses through equipment, machinery, or premises.
Chancellor George Osborne said: “Today’s figures show that half way through its first year 856,000 businesses across Britain have already benefited from a cashback on jobs.
“Businesses across the country can claim a cut in their National Insurance bill, worth up to £2,000, thanks to the Employment Allowance – and if they haven’t already then I urge them to do so.
“This tax cut is part of our long term economic plan to back businesses investing in jobs. That is how you deliver greater economic security for hardworking people.”
Mark Owen, chairman of the Gloucestershire and West of England region of the Federation of Small Businesses. (FSB) said: “The introduction of the Employment Allowance was a very good move which has been welcomed by our members. Small firms have been responsible for creating the vast majority of jobs in recent years so initiatives like this which help us to grow our businesses and grow our workforce are good news for the jobs market and very good news for both the local and national economy.”
David Owen, Chief Executive GFirst LEP, said: “We feel the Employment Allowance is a great idea for small businesses and charities within Gloucestershire, and hope that they are seeing the benefits of lower National Insurance contribution. This is another step towards developing and growing the economy of Gloucestershire.”
John Allan, National Chairman of the Federation of Small Businesses (FSB) said: "We're really pleased to see so many businesses already taking advantage of the Employment Allowance. We called on Government to help small employers invest in staff, and now we see how this additional support has been spent.
“Our members have used the Allowance by paying workers more, hiring new people and increasing training. It's also good to see a quarter of those that used the allowance to hire new staff took on an apprentice. We will work with government to raise the profile of the Employment Allowance so all the firms eligible, claim it."
