THE government announced a change to the Employment Allowance in the March budget that’s likely to bring financial benefits for some churches.
It was revealed that the maximum Employment Allowance will increase from £3,000 to £4,000 per annum from Monday, April 6, 2020.
This means that eligible churches – and other charities and businesses – will be able to claim a greater reduction on their Secondary Class 1 National Insurance Contributions on their employment costs.
When detailing the objective for this policy change, the government stated: “This measure supports charities by providing relief of up to £4,000 on their employer secondary Class 1 National Insurance Contributions liabilities.
“This is expected to reduce around a further 65,000 [organisations’] National Insurance Contributions bill to £0, and further allow small, growing enterprises to take on staff without incurring additional National Insurance Contributions liabilities.”
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