The Employment Allowance - new tax break for small firmsThe Employment Allowance was brought in for the last budget announcement. It appears to be a rather generous tax break which in return for ticking a box when doing PAYE online, SMEs get £2k knocked off their national insurance bill. There seems nothing else to it and apparently it also includes directors' salaries. This may be an attempt to encourage more limited companies to pay more of their senior staff in wages rather than dividends. We received an interesting update recently from a business magazine which included a link to the government's employment allowance calculator - www.employmentallowance.com/allowance-calculator. The start date is April 2014. Lets hope it turns out to be as good as it sounds..
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