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Many small businesses not claiming their £2,000 tax break

by Sable International | Aug 19, 2014
  • A recent snap poll by Sage UK has revealed that as many as one in 10 small and medium-sized business owners are not aware of a £2,000 annual Class 1 National Insurance Contribution (NIC) tax break they are entitled to.

    89% of respondents said they had indeed claimed money back, while 9% said that they had not checked their eligibility and 2% knew they were eligible but had not bothered to claim. 

    Essentially a tax break for small businesses, the £2,000 is part of the Employment Allowance (EA) Rebate launched by Chancellor George Osborne in April 2014. The Employment Allowance is an important part of the government’s drive to support small businesses by enabling them to employ more staff. Under the scheme, SMEs that employ 250 staff or fewer are eligible for NIC reductions.  

    This means that around 1.25 million employers are entitled to the rebate and could collectively be missing out on as much as £275 million.

    “During periods of growth or indeed difficult times, the £2,000 saving could go a long way in supporting businesses through funding staff training, the purchase of new equipment or even paying down loans and overdrafts,” said Alam Khan, Client Accountant at Sable INternational.  

    It is also interesting to note that every business owner who successfully claimed the rebate described the process as "simple", while 73% said it was "very simple". Sable Accounting has processed claims on behalf of clients as part of our ongoing payroll services, with immediate and hassle-free benefits.

    For assistance with your SME-related accounting matters, please visit our accounting page or call +44 (0) 20 7759 7553.

    We are a professional services company that specialises in cross-border financial and immigration advice and solutions.

    Our teams in the UK, South Africa and Australia can ensure that when you decide to move overseas, invest offshore or expand your business internationally, you’ll do so with the backing of experienced local experts.

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