CIOT: NIC cut offers welcome relief for employers
The Low Incomes Tax Reform Group (LITRG) has welcomed the Chancellor’s announcement of a £2,000 cut in employers’ national insurance contributions for all businesses and charities from April 2014. This should make it easier and less expensive for new and growing businesses to take on new staff.
LITRG Chairman Anthony Thomas commented:
“These are times in which new and growing businesses risk being overwhelmed by administrative costs. For example, the Real-time Information (RTI) requirement, though worthwhile in itself, is almost certainly going to increase the cost burden on small businesses disproportionately, despite recent welcome concessions for the first six months of the operation of RTI. This allowance for employers paying NI contributions for their staff should help offset some of those impositions.
“We can only hope that the structure of universal credit for the self-employed, which is particularly burdensome in its present form, will be revisited in the light of the realisation of the importance of small business to the economy.
“We also sincerely hope that although this allowance will be operated through RTI, digitally excluded employers will be able to benefit from it as much as their more computer-savvy counterparts.”
Notes for editors
The Low Incomes Tax Reform Group (LITRG) is an initiative of the Chartered Institute of Taxation (CIOT) to give a voice to the unrepresented. Since 1998 LITRG has been working to improve the policy and processes of the tax, tax credits and associated welfare systems for the benefit of those on low incomes.
The CIOT is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities. The CIOT’s 16,500 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’.
George Crozier
External Relations Manager
D: +44 (0)20 7340 0569
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The Chartered Institute of Taxation
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www.tax.org.uk
The Association of Taxation Technicians
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www.att.org.uk
Low Incomes Tax Reform Group – an initiative of the Chartered Institute of Taxation
www.litrg.org.uk
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