BUSINESS owners are being urged not to miss out on a new tax break designed to tackle youth unemployment.
The tax break was announced in the Chancellor’s Autumn Statement following the introduction of the Employment Allowance in April last year.
Qualifying employers may be able to cut up to £2,000 from National Insurance contributions.
James Self, of TaxAssist Accountants in Portsmouth, said: ‘Any local business owners employing people aged 16 to 21 will not have to pay secondary National Insurance contributions for them after April 6, provided they are each earning under £815 per week.’
James explained that National Insurance can be a major cost for employers and the relief will hopefully encourage small businesses to take on new staff and boost job creation.
He added: ‘For young employees earning £12,000 a year this would mean a saving of £500 for the employer, and for those earning £16,000 a year, more than £1,000.
‘That is a major incentive for many small businesses who are considering taking on more staff.
‘Local retailers and hospitality businesses, which traditionally employ young people, will particularly benefit and for school leavers it should open up more opportunities across all sectors.’