Just under half a million businesses will have no employers NIC to pay from next year
The NICs Employment Allowance, to be introduced in April 2014, will see 450,000 businesses have no employers NIC to pay according to HMRC statistics.
The allowance, which will be available to every business and charity in the UK, regardless of age, size or location, will entitle employers to reduce their NIC bill by £2,000.
Up to 1.25 million businesses are expected to benefit from the allowance, 98% of which will be small and medium sized businesses who have fewer than 250 employees. Of those 1.25 million Revenue analytics shows that 450,000 businesses will enjoy the luxury of not having to pay any employers NIC as follows:
| Region | Expected No. of employers who won’t pay any NICs |
|---|---|
| London | 74,000 |
| South East | 68,000 |
| North West | 53,000 |
| East of England | 44,000 |
| South West | 39,000 |
| West Midlands | 35,000 |
| Scotland | 33,000 |
| Yorkshire and the Humber | 31,000 |
| East Midlands | 30,000 |
| Wales | 18,000 |
| North East | 15,000 |
| Northern Ireland | 10,000 |
| Channel Islands | < 50 |
| Isle of Man | < 50 |
The statistics are also broken down by industry sector:
| Industry Sector | Expected No. of employers who won’t pay any NICs |
|---|---|
| Professional, scientific & technical | 78,000 |
| Retail, wholesale & motor | 69,000 |
| Construction | 55,000 |
| Catering, accommodation & food | 46,000 |
| Information & communication | 38,000 |
| Admin. & support | 38,000 |
| Other service activities, trade unions, household goods repairs, hairdressing etc |
34,000 |
| Health & social care | 20,000 |
| Manufacturing | 19,000 |
| Agriculture, forestry & fishing | 11,000 |
| Transport & storage | 11,000 |
| Arts, entertainment & recreation | 9,000 |
| Real estate | 8,000 |
| Education | 7,000 |
| Finance & insurance | 5,000 |
| Water supply | < 1,000 |
| Mining & quarrying | < 500 |
| Electricity, gas, steam & air conditioning | < 500 |
It is promised that the allowance will be simple to claim and will be delivered through standard payroll software and HMRC’s Real Time Information system. Employers will only need to confirm their eligibility through their regular payroll processes. HMRC will then deduct up to £2,000 from their employers NIC liability throughout the course of the year.
More details on how to claim the Employment Allowance will be available in the New Year.
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