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First £2000 of national insurance contributions to be waived - Employee Benefits

First £2000 of national insurance contributions to be waived - Employee Benefits


First £2000 of national insurance contributions to be waived - Employee Benefits

Posted: 08 May 2013 12:00 AM PDT

The first £2,000 of national insurance contributions (NICs) for employers will be waived under the National Insurance Contributions Bill set out in the Queen's speech. 

The legislation was initially announced by Chancellor George Osborne in the Budget 2013, with the aim of promoting employer growth.

The bill's employment allowance clause means that 450,000 small organisations will be exempt from paying NICs.

The bill will also extend the general anti-abuse rule to employment tax and prevent the use of offshore payroll organisations.  

The changes will take effect from April 2014.

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