Many remember the Chancellor's announcement in last years budget of the 'Employment Allowance' which effectively saved £2000 in NI Contributions for small business employing staff (discussed here on LJN), but how many remember the second announcement ?
Well, it was that NICs for U21's will be scrapped to entice businesses to take on more young people. From April 2015 there will be NO Employer NI contributions to pay for staff under 21 who earn up to £813 per week - equivalent to a £42,285 salary. Above this limit the normal NIC rate of 13.8% will be payable.
It means that employing someone under 21 on, say £12,000 will cost the employer £500 less than before, with that saving rising to £1,000 for someone on £16,000
The employee still pays NI contributions to ensure entitlement to State Pensions and other associated benefits.
Worth remembering when looking for staff, eh ?
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