Partner Article

Highest take-up of new Government allowance by Yorkshire & the Humber businesses

New data has shown that 66,000 employers in Yorkshire and the Humber are benefiting from the Employment Allowance, a take-up rate of 75%, higher than any other region in the UK.

The Employment Allowance (EA) is a reduction in National Insurance Contributions (NICs) that an employer pays on their employees, and is worth up to £2,000 for eligible businesses and charities.

Within the first six months of its launch 856,000 employers across the UK had benefited from the EA, with an average take-up rate of 68%.

Announced at Budget 2013, the allowance is simple to claim and easy to administer. Businesses simply confirm their eligibility for the allowance through their regular payroll processes.

The new data coincides with a recent survey by the FSB amongst small businesses which found that many small businesses have used the EA to invest in staff. So far, 18% have used it to increase wages, 17% to hire additional staff, 12% for training, and 8% for more staff hours for current staff.

In addition, 18% of small businesses surveyed have used it to invest in their businesses through equipment, machinery, or premises.

Chancellor George Osborne said: “The figures show that half way through its first year 856,000 businesses across Britain have already benefited from a cashback on jobs.

“Businesses across the country can claim a cut in their National Insurance bill, worth up to £2,000, thanks to the Employment Allowance – and if they haven’t already then I urge them to do so.

“This tax cut is part of our long term economic plan to back businesses investing in jobs. That is how you deliver greater economic security for hardworking people.”

Chris Glen, regional chairman of the FSB in West Yorkshire, commented:“It’s great to see that three quarters of eligible businesses in Yorkshire and Humber have already taken-up the Employment Allowance.

“The allowance represents a real saving in employers’ costs – something which the FSB has continually lobbied on.

“Our research shows that the allowance is enabling small firms to reinvest the saving in the development of their business; either through new jobs, staff rewards, marketing and PR or new capital equipment, and that is good news for the local economy.

“If any small business has not yet taken-up their entitlement to the Employment Allowance we strongly urge them to do so.”

This was posted in Bdaily's Members' News section by Clare Burnett .