NIC Saving for Yorkshire business: from the Harrogate accountant

By Paul Bushell, the Harrogate Accountant.

coinsFrom April an estimated 450,000 businesses will be eligible for National Insurance savings of up to £2,000 per year.  The Employment Allowance, announced by the Chancellor in last April’s budget, applies to businesses with less than 250 employees, charities and community amateur sports clubs.

National Insurance payments are nothing less than an employment tax so it’s about time the government helped businesses take on more staff. I know from my own clients the impact it has on Yorkshire businesses growing their work force and sales.

What this could mean for your business in practice:

  • If your annual National Insurance bill is less than £2,000 you will save the whole amount and pay nothing.
  • If you employ 5 full time employees on the national minimum wage, your NI bill will reduce by 80% from £2,430 to £430.
  • If you have 10 employees, all on the national minimum wage, your NI bill will reduce by 40%.
  • Perhaps the greatest benefit is for start-ups that can now take on an employee earning up to £22,400 and pay no NI at all!

The savings to businesses will add up to around £1.7bn per year, leaving 1 in 3 employers paying nothing at all.

If you would like to find out the total savings available to your business, try the savings calculator.  It only takes a minute or 2 and will tell you exactly how much you can save.

Better still, it’s a great opportunity to review all your tax payments.  If you want to find out if you are missing out on other tax saving opportunities, get in touch.

Call me, Paul Bushell, the Harrogate accountant, on 01423 566 588 or email with the subject line Tax Savings.  I’ll get back in touch with you to find out if you can pay the taxman even less.