Figures released today show that 1600 business in Watford, Oxhey and Abbots Langley have benefitted from a tax break introduced by the Chancellor of the Exchequer earlier this year.
The Employment Allowance, which came into effect in April, offers a £2000 reduction in employer’s national insurance contributions. This reduces the cost of taking on new staff by reducing the tax bill, makes it easier to hire new employees, and in the case of around half a million businesses and charities throughout the country will mean they will pay no employer NI contributions at all this year.
The £2000 Employment Allowance is part of a number of reforms to boost jobs and incentivise further jobs creation, another break, which scraps employers national insurance contributions for employees aged under 21 in a bid to further combat youth unemployment, was confirmed during the Chancellor’s visit to the Morrison’s store in Watford last year alongside Richard Harrington MP.
Richard, speaking earlier today, had just finished working a shift at Gibsons the Butchers on Watford High Street, and is encouraging more small local business to take up the tax break. He said: “It is fantastic news that so many Watford businesses have taken this up in the first six months. For small local businesses and shops in our shopping parades, this makes a significant difference to the freedom they have to grow and employ more people – which is exactly what we should be doing as a Government.
Nationally around 68% of eligible businesses and charities have taken this up so far, which is great for the first six months of the scheme, but it also means more people could be benefitting - so I would encourage as many local businesses as possible to look into this and see whether it could help them – and take advantage of it! We have seen significant job creation in Watford with thousands of jobs created since 2010, and unemployment has nearly halved, but there is more to be done.”
To see whether your business or charity is eligible and join the 1600 Watford businesses who have already done so, please visit www.gov.uk/employment-allowance