The government have introduced the “employment allowance”, this allowance was announced in the 2013 budget and offers £2,000 per year towards a businesses’ national insurance contributions.
This is a significant investment especially for SMEs; the intention was to encourage businesses, especially smaller businesses, to recruit more staff.
A survey of SMEs published by Direct Line for Business found that 1 in 5 of respondents are more likely to expand as a result of this initiative. In addition to this a further 33% said they were looking to recruit because of the reduced cost of employment.
This is a real boost for businesses, especially at a time when the economy is struggling and many smaller businesses are unable to stay afloat.
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