Manufacturing to get a boost from jobs tax cut, says HMRC

money300Up to 89,000 businesses in the manufacturing industry will be among those to benefit from a reduction of up to £2,000 from their employer National Insurance Contributions (NICs) bill, HMRC announced today.

The Revenue says the businesses will be able to cut their NICs bill – the tax that an employer pays for employees’ entitlement to a State Pension – from April 2014 thanks to the Government’s new Employment Allowance.

Available to all 1.25 million businesses and charities in the UK, over 90 per cent of the benefit of this allowance will go to businesses with fewer than 50 employees. Some 19,000 businesses in manufacturing paying NICs of £2,000 or less will see their employer NICs wiped out.

A business that employs one person on £22,400 will pay no employer NICs. A business employing five adults full-time on the national minimum wage will see their employer NICs bill reduced by over 80 per cent.

Available every year, HMRC says the allowance will be simple to claim and easy to administer. “Businesses will just have to confirm their eligibility for the allowance through their regular payroll processes and up to £2,000 will be deducted from their employer NICs liability over the course of the year,” a statement said.

Copyright Ken Hurst 2013

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About Ken Hurst

Ken Hurst began his career as a journalist in London over 30 years ago, working on a range of publications before moving on to weekly newspaper production in the newly-independent Zambia of the 1970s. He returned to the UK where his work included spells on newspapers and magazines, before moving to head up Norwich Union’s corporate affairs division. In the 1990s he moved on to freelance, co-own and publish the B2B audio magazine Sound and front the BBC radio Yesterday’s Papers programme. There followed six years as Business Editor at Britain’s biggest selling regional daily newspaper, The Eastern Daily Press, where he led an award-winning team and for whom he still writes a weekly socio/political comment column. Subsequently, he was Group Editorial Director at CBM, responsible for its UK and US magazine output – including The Manufacturer magazine – research-driven industry reports and live events content. Currently he is Contributing Editor at Works Management magazine publisher Findlay Media and Chairman of the consumer publishing house TNT Multimedia Ltd. He is a Fellow of the Royal Society of Arts and of the British Association of Communicators in Business.
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