Budget cuts employers’ national insurance contributions

George Osborne’s Budget for “an aspirational nation” has set out important changes for UK employers. The Chancellor today announced that, from April 2014, the first £2,000 will be taken off employers’ national insurance bills. It is intended to help all British firms, especially small ones looking to recruit.

“It’s a tax off jobs,” he said, “and it’s worth up to £2,000 to every business in the country – 450,000 small businesses will pay no jobs tax at all come April 2014, and this is available to charities and sports clubs.”

There was also a promise of support for employers that help staff return to work from long-term sick leave, with the Government introducing tax relief of up to £500 on amounts paid by employers on health-related interventions.

Ben Willmott, head of public policy at the Chartered Institute of Personnel and Development, welcomed the move: “Research shows that the longer people are off sick, the less likely they are to make a successful return to work; after six months’ absence from work, there is only a 50% chance of someone making a successful return….”

http://www.personneltoday.com/articles/20/03/2013/59285/budget-cuts-employers-national-insurance-contributions.htm

 

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