UP to 52,000 construction firms are to benefit from a tax cut worth up to £1,000, the UK Government has said.
It comes as the employment allowance rises from £4,000 to £5,000, meaning smaller firms are able to claim up to £5,000 off their employer national insurance contributions bills.
Westminster said that 94% of the firms set to benefit from the increase are small and micro businesses – with construction amongst the sectors set to see the highest numbers of employers (52,000) benefiting, alongside retail (87,000), and the professional, scientific and technical activities (63,000).
Chancellor Rishi Sunak said, “This tax cut for half a million businesses will help them thrive and grow to help drive our economic recovery. It comes on top of a suite of wider tax cuts available to firms, including 50% business rates relief, a record fuel duty cut and the super-deduction, the largest two-year business tax cut in our history.”
Martin McTague, national chair of the Federation of Small Businesses, said, “The increase in the Employment Allowance helps small firms do what they do best, creating and sustaining jobs. This was FSB’s ‘hero ask’ at the Spring Statement, and we have hugely valued the time taken by Treasury officials to work with us on the positive impact this will have not just on work opportunities, but also training and investment. The chancellor has now raised the Allowance twice since his appointment, stepping up for small businesses.”