By Daniel Hunter
From April 2014, the National Insurance Contributions Bill will deliver a £2,000 a year tax cut for businesses and charities.
As the National Insurance Contributions Bill is introduced to the House of Commons, the Prime Minister is today visiting small businesses in the East of England to hear about the issues that matter to them and highlight what the government is doing to support them.
The Bill contains legislation for the Employment Allowance which, from April 2014, will give businesses and charities a £2,000 tax cut off their National Insurance Contributions bill.
Benefiting up to 1.25 million businesses, this action taken by the government will result in around 450,000 businesses — or one third of all employers — being taken out of paying National Insurance Contributions altogether.
The Employment Allowance will be of greater benefit to small businesses, as it will reduce their National Insurance Contributions bill the most. Over 90% of the benefit of this allowance will go to small businesses with fewer than 50 employees.
This will also mean that businesses will be able to employ four adults or ten 18-20 year-olds full-time on the National Minimum Wage without paying any employer National Insurance contributions at all.
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