Small businesses facing rising labour costs and the impact of the new Employment Rights Act can access valuable support, including the Employment Allowance, Small Employers Relief, and the Apprenticeship (soon Growth & Skills) Levy. Read below to discover the financial incentives and guidance available to help streamline recruitment and reduce hiring costs.
Small businesses are nervous about the outlook for the year ahead according to Chambers of Commerce in the face of rising costs in particular for labour. They are also concerned about the impact of the Employment Rights Act recently passed.
New staff are a key component of most growth strategies, so what incentives or support is available?
Well, the Employment Allowance can help reduce its annual bill for national insurance. It is accessed through usual payroll processes and will reduce
Tony Cross, Berkshire Growth Hub Business Adviser
contributions every month until you reach the £10,500 allowance limit. It covers all businesses and can be backdated if overlooked.
Furthermore, the Small Employers Relief for those paying less than £45,000 per year in N.I should allow almost all statutory payments, such as maternity, paternity, adoption and parental bereavement pay to be reclaimed.
Small businesses could also check out the Apprenticeship Levy, soon to be replaced by the Growth and Skills Levy. Here small firms can recover training costs and more making apprentices an attractive recruitment option.
And then there is always advice close at hand. The Governments’ Business Growth website, National Careers Service and your local Growth Hub, can help assess and advise on recruitment options.
