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Small Businesses: Employers' Contributions

Asked by Alex EastonIndependentTreasuryTabled Answered 21 January 2025UIN 902295

The question

To ask the Chancellor of the Exchequer, what steps she is taking through the tax system to support small businesses with increases in employer National Insurance contributions.

Answered by James Murray

The Government has protected the smallest businesses by increasing the Employment Allowance from £5,000 to £10,500. This means that next year, 865,000 employers will pay no NICs at all. The government has also frozen the small business multiplier. Together with Small Business Rates Relief (SBRR), which exempts over a third of properties from business rates, this will protect 90% of properties from inflationary increases in business rates liabilities.

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