Budget 2015 The abolition of Employers National Insurance – how does this affect your employees?
20th March 2015
The abolition of Employers National Insurance – how does this affect your employees?
The Chancellor announced the abolition of Employers National Insurance for employee’s under 21 from April this year and for apprentices under the age of 25 from April next year. Whilst the government recognise the importance of incentivising employers to recruit young people and train apprentices and on the face of it the National Insurance measures makes this an even more attractive recruitment option will this really change employer recruitment policies….
Yes employers will be able to make some modest savings but in reality apprenticeship and national minimum wages levels are such that employers will have been paying little or no Employers National Insurance before these measures and they will know that. Business leaders make commercial recruitment decisions based on the needs of their businesses not modest tax breaks…
Nice headlines but a real shot in the arm in tackling youth unemployment and skill shortages … I am not so sure.
Written by Matthew Benton, Senior Manager