Small Businesses: Employers' Contributions
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of (a) increasing Employment Allowance and (b) reducing National Insurance contributions for small businesses.
Answered by James Murray
The Government has taken necessary decisions to fix the public finances and create long-term stability in which businesses can invest and thrive.
The Government decided to protect the smallest businesses from the changes to Employer NICs announced at the last Budget by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change. It means employers will be able to employ up to four full-time workers on the National Living Wage without paying employer NICs.
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