More than 850,000 businesses have benefited from the Employment Allowance in the scheme’s first 6 months, official figures have revealed.
The Employment Allowance reduces the national insurance contributions (NICs) bill for eligible employers, who can claim a class 1 secondary NICs reduction of up to £2,000 through their payroll software.
The figures reveal:
- 856,000 businesses have taken advantage of the NICs discount in the first 6 months of the scheme
- the wholesale and retail trade sector has benefited most, with 191,000 businesses claiming the allowance
- 131,000 firms in the professional and scientific sector and 106,000 in the construction sector have benefited
- Yorkshire and the Humber (75%) and Northern Ireland (73%) have seen the largest take-up rate.
A recent survey by the Federation of Small Businesses (FSB) found that many firms have used the money saved via the Employment Allowance for capital investment:
- 18% of employers used the saving to increase wages
- 17% were able to hire more staff
- 12% have spent the extra money on training
- 18% have invested in equipment, machinery or premises.
John Allan, national chairman of the FSB, said:
“We’re really pleased to see so many businesses already taking advantage of the Employment Allowance.
“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.”
Jack Ross can advise on claiming the Employment Allowance to find out more call 0161 832 4451.