For every employee you have on the payroll who earns over £7956; you and your business will have to pay 13.8% NationaI Insurance Contribution (just another name for tax) on any earnings over this amount. That’s why it’s nicknamed the jobs tax! However a recent initiative will help reduce this and could potentially save you up to £2000.

Employers can reduce the amount of National Insurance contributions (NICs) they pay for their employees by up to £2,000. This is called the ‘Employment Allowance’. Employment Allowance can be claimed from 6 April 2014.Up to 1.25 million businesses and charities will benefit from Employment Allowance.Around 450,000 businesses and charities won’t have to pay any employer National Insurance contributions at all. This is a real saving and extra money staying in your business. Dont miss out!
If you have any questions about this please contact me on 0116 3677424.

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