Employment Allowance: one month to go until businesses can claim £2k cashback on jobs
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Treasury minister David Gauke visits tech start-up to mark Employment Allowance milestone.
With just one month to go until the introduction of the Employment Allowance, the Exchequer Secretary to the Treasury, David Gauke, visited a start-up business in Tech City to find out how they will benefit from the allowance.
From 6 April, businesses and charities will be able to claim up to £2,000 off their employer National Insurance Contributions (NICs) bill.
With 90% of the benefit going to small businesses employing fewer than 50 people, Exchequer Secretary to the Treasury David Gauke visited Grabble, an online fashion start-up in Tech City, London to tell co-founders Daniel Murray and Joel Freeman about the £2,000 cashback on jobs and showcase HMRC’s Employment Allowance calculator.
The calculator allows employers to see approximately how much they will benefit from the allowance throughout a year.
On his visit, the Exchequer Secretary toured the start-up’s new office. The company, which lets users save their favourite fashion items from any other website onto the Grabble site in personal collections like wish lists, has recently moved to a new office to accommodate their growing team.
He also got to see how Grabble works and learned that the company has also benefitted from other government initiatives to support start-ups such as the Seed Enterprise Investment Scheme and the Enterprise Investment Scheme.
Discussing the benefits the allowance will bring, David Gauke said:
The government is committed to supporting businesses and creating the conditions for growth. That’s why we introduced the Employment Allowance and in exactly one month, businesses across the country will benefit from a saving of up to £2,000 on their employer NICs bill.
This new tax cut is part of our long term economic plan to back businesses investing in jobs and it was great to hear first-hand the benefit it will bring and what businesses will do with the saving.
Co-founder at Grabble Daniel Murray added:
As a small business that is growing, the new Employment Allowance will save us £2,000 over the next year. This is great news for us and means we can redistribute that straight into learning and development for our employees, which benefits us considerably.