Adam Afriyie, MP for Windsor, has welcomed the new tax cut for businesses and employers, which takes effect this Sunday.
The new Employment Allowance will take £2,000 off the National Insurance bill of every employer, including businesses, charities and local clubs, taking 68,000 small businesses in the South East out of having to pay any tax on jobs at all.
Employers will be able to hire one extra person on £22,400 a year, or four people working full time on the minimum wage, without paying any National Insurance.
Adam Afriyie, MP for Windsor, said:
‘By cutting this pernicious Jobs Tax, Conservatives are putting jobs at the heart of our long-term economic plan. It will make it cheaper and easier for firms to hire new people, giving more people the security of a monthly wage.
‘Unemployment in Windsor has fallen by a third since May 2010. By taking 68,000 small businesses out of National Insurance in the South East, this tax cut will create even more jobs, ending the perverse system where businesses have to pay even more tax to employ people.
‘There are already more than 1.3 million people in work since the election, but the job’s not done. We must stick to our long-term plan to rebalance the economy and build a stronger, more competitive economy.’
Notes to Editors
- Mr Afriyie’s website: http://www.adamafriyie.org/.
- The new £2000 Employment Allowance will cut National Insurance for every business and charity by £2,000 from 6 April 2014. Businesses will be able to hire one extra person on £22,400 pa, or four people working full time on the minimum wage, without paying any National Insurance. It means 450,000 small businesses, one third of all employers, will pay no jobs tax at all.
- Employment is up by over 1.3 million since the election. In the three months to April 2010, there were 28.842 million people in employment. In the three months to January 2014 there were 30.191 million people in work.
- The private sector has created 1.7 million jobs since the election. This excludes the effect of major reclassifications and compares Q1 2010 to Q4 2013.