So yesterday’s Budget has been and gone and I’m sure many small and medium size enterprises (SMEs) were listening eagerly to how it would affect them.
While there is much to take away from George Osborne’s speech, let’s start with the break he is offering SMEs like us – the one which he said was the “largest” tax cut in the entire budget.
According to Osborne, as of next year, up to 450,000 businesses won’t have to pay National Insurance contributions.
The aim of this employment allowance is for SMEs to boost job creation so that they can hire their first employer or expand their workforce. It allows a company to hire one member of staff earning £22,400 – or four workers on minimum wage – and be free from National Insurance contributions.
This kind of break has long been called for by cash-strapped SMEs and it even goes beyond what many were asking for, so we should be pleased about that.
I guess it’s time to think about taking out a job ad then.
Posted by the Secret Businessman