The Chancellor George Osborne announced a raft of changes in his budget last month, but the most eye-catching revolved around a National Insurance cut designed to aid job creation. Many UK companies will have to pay considerably less in their National Insurance Contributions – perhaps up to £2,000.
The change means that when it comes into force, “one third of all employers” – according to the Chancellor – will not have to make any NIC contributions at all. Osborne said, “They can hire someone on £22,000, or four people on the minimum wage, and pay no jobs tax.”
In terms of being a bold move, the change is seen by many as fairly radical.
Director General of the British Chambers of Commerce (BCC), John Longworth, welcomed the plan, saying it “will give many businesses an important boost of confidence.”
Writing on the BBC News site, Anne Redston, Professor of Law, King’s College London, said the change “is likely to encourage one-man businesses to take on their first employee.”
A boost to landlords
Any promising new job creation policy is sure to be welcomed by our customers, since the more young people who are able to find jobs, the higher the demand for rooms and flats will be. The recession has meant that many millions of younger people have remained in their family homes, rather than taking up their own accommodation. If you are a landlord, but not currently a customer click here for more information on our products