While the reduction in beer duty in the recent budget was greeted with cheers, there was also some good new for small and medium employers. From April 2014 the government are introducing a £2,000 Employment Allowance. In an effort to encourage companies to hire staff, the allowance will cut £2,000 off the employer national insurance bill for all businesses and charities. Under this measure, small businesses will be able to hire one person on £22,000 or four people on the minimum wage (currently £6.10 per hour) without paying any employer’s national insurance.
George Osborne said: “I want us to send a message to anyone who wants to invest here, to create jobs here, that Britain is open for business.” Additional support for businesses was provided by reducing corporation tax by 1% to 20%, and employees will benefit from the rise in the personal tax allowance to £10,000 in 2014 as well.