Small Businesses: Employers' Contributions
The question
To ask the Chancellor of the Exchequer, what support her Department is providing to SMEs on the changes to employer National Insurance contributions.
Answered by James Murray
The Government has protected the smallest businesses and charities from the impact of the increase to Employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no NICs at all next year, more than half of employers will see no change or will gain overall from this package, and all eligible employers will be able to employ up to four full-time workers on the National Living Wage and pay no employer NICs.
Businesses will also still be able to claim employer NICs reliefs including those for under 21s and under 25 apprentices, where eligible.
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