6 April 2022
Nearly half a million UK businesses will benefit from a tax cut worth up to £1,000 from April 2022.
The Chancellor, Rishi Sunak announced in the Spring statement that this tax cut will help half a million businesses thrive and grow to support economic recovery.
The Employment Allowance has risen from £4,000 to £5,000 allowing small companies the ability to claim up to £5,000 of their National Insurance Contributions (NICs) bills.
94% of businesses benefitting from the £1,000 increase are small micro businesses in scientific and technical activities industries, construction sector and wholesale and retail.
The Employment Allowance change is just one of a number of measures on offer to spur business growth, including the tax regime for innovation. The government aims to ensure the R&D Tax Credit Scheme is globally competitive and properly incentivises higher business investment in R&D, with further plans to be set out in the Autumn.
