The Association of Convenience Stores has welcomed the introduction of the National Insurance Contributions Bill to Parliament, which could save local shops up to £2,000 a year.
From April 2014, the Bill will give up to 1.25 million businesses and charities a £2,000 reduction in their annual National Insurance Contributions, resulting in 450,000 businesses being taken out of paying NI contributions altogether.
ACS chief executive James Lowman said: “The Employment Allowance will provide direct help to local retailers helping them to take on new staff. Local stores already create around 375,000 jobs, and increasing wage costs put pressure on retailers’ ability to employ more people.”
Over 90% of the benefit of the Employment Allowance will go to small businesses with fewer than 50 employees. It will also mean that businesses will be able to employ four adults or ten 18-20 year-olds full-time on the National Minimum Wage without paying any employer National Insurance contributions at all.
The Government has launched an online calculator to allow businesses to see how the Employment Allowance will reduce their National Insurance bills, which is available by clicking here.