The Government is introducing two measures which will allow businesses to reduce their NIC bills, make sure you watch out for further details of how to claim both reliefs:
1) £2,000 Employer NIC allowance
Budget 2013 announced a £2,000 employment allowance for 2014/15.
Available from April 2014, this means businesses can save £2,000 on employer’s Class 1 Secondary NIC via payroll.
We are told that the relief will be easy to claim and will not be tangled up in lots of admin, further details have been promised in the New Year.
2) More NIC savings if you employ under-21s
The Autumn Statement confirmed that employers NIC will be abolished for under-21s who earn <£813 a week with effect from 6 April 2015. Savings are estimated at:
- £500 for every under-21 earning £12,000 and
- £1,000 for those earning £16,000
So this is a saving not to be sniffed at!
Provided the measure goes ahead as planned, the exemption is set to apply to both existing and new employees with no effect on state pension entitlement.