PM's letter to small businesses on Employment Allowance
Published 5 April 2014
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I am writing to you today about the new tax cut for businesses and charities that starts on 6 April.
The new Employment Allowance could take £2,000 off your employer National Insurance Contributions (NICs).
Britain has been through some very tough years. We endured one of the biggest bank bailouts in the world and the deepest recession in generations. For businesses and charities like yours, on the frontline of the economy, we know it has been especially difficult.
We came into government with a long term economic plan to rescue the economy.
Thanks to your hard work, we are now seeing the results. A private-sector recovery with the economy growing, jobs being created, and confidence reaching new highs. Businesses are saying to us they want to invest, grow, and take on new people. The Employment Allowance is about helping you to do that.
The Allowance will cut up to £2,000 from your employer NICs bill. This means £2,000 cashback on the cost of jobs that you can choose how to spend. I hope you will consider using it to take on more employees.
Simplicity has been the priority in designing the allowance. It will be easy to claim, and all you have to do is tick a box on your payroll software. You can check your eligibility and see more practical details online at:
https://www.gov.uk/employment-allowance
Around 1.25 million businesses employing someone will benefit from the Allowance, whether you are taking on your first employee or your fiftieth. A third of all employers will see their NICs bill abolished. The Employment Allowance starts on 6 April. I urge you to sign up so that you can benefit from a cut in the cost of employing someone and help to grow our economy.
Yours sincerely
[Signed David Cameron]