BUDGET 2013: Employers get NI relief
Thursday 21 March 2013
Printable
EmailTrade unions derided the Chancellor's announcement yesterday of an employment allowance that will allow some employers to avoid paying national insurance contributions (NICs).
From 2014, every business will be able to employ one worker on a salary of £22,400, or four employees on the minimum wage, without paying any employer NICs.
George Osborne claimed it was taking tax off jobs and would particularly help small businesses which wanted to hire their first employee or grow their workforce.
But the Scottish TUC questioned whether the allowance would generate new jobs, given that the problem is low demand for goods and services.
"It also provides another opportunity for avoidance as employers will now look to split companies into separate units," said general secretary Grahame Smith.
If you appreciated this article then please consider donating to the Morning Star's Fighting Fund to ensure we can keep developing your paper.
Editorial
Stand by our firefighters
Fire Minister Brandon Lewis probably had a fair idea what Sir Ken Knight would deliver when he asked him to conduct an "independent" report into fire and rescue services in England.
Features
A timely reminder of the long fight ahead
As LGBT activists worldwide celebrate anti-homophobia day we are reminded of prevailing prejudice
Fighting child abuse in the community
Bradford has seen the launch of a new campaign to battle the sources of child sex exploitation - and combat far-right bids to make it a racial issue