The Chancellor has announced a raft of investment incentives in his Budget announcement, most notably a national insurance contributions (NICs) relief for small businesses.
In a bid to help drive growth, from April 2014 the government will introduce a new “employment allowance” that will reduce each company’s NIC bill by £2,000.
Osborne said the allowance will mean 450,000 small businesses will pay no “jobs tax” at all. Up to 1.25 million employers are set to beneﬁt, with more than 90% of the beneﬁt going to small businesses.
TaxCalc’s Alex John said during AccountingWEB's live blog that the move would have a “really big impact” on small business. “For small businesses that are trying to grow, the cost of employing someone is a bit of a blocker, and this new measure goes some way to alleviating that cost,” she said.
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- Employee shareholder status: shares for rights
- Corporation tax moves towards single 20% rate in 2015
- Capital gains tax relief for SEIS shares
- Stamp duty exemption for growth market shares
- R&D tax relief
- Company cars - new low emission bands