Tax changes to aid companies

The Poundland store in Gosport High Street. Picture: Google Maps

New store opening in Gosport offering clothes for just £1

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CHANGES to the way National Insurance Contributions (NICs) are going to be paid in the future could see businesses in the Portsmouth area saving up to £2,000.

The new Employment Allowance will be introduced in April next year and is set to benefit around 200,000 businesses in the south east.

The allowance will mean that a business that employs one person on a salary of £22,400 will pay no employer NICs on those earnings. A business employing five adults full-time on the national minimum wage will see their employer NICs bill reduced by more than 80 per cent.

Available every year, the allowance will be simple to claim and easy to administer.

Businesses will confirm their eligibility for the allowance through their regular payroll processes and up to £2,000 will be deducted from their employer NICs liability over the course of the year.