The national insurance contributions bill is designed to reduce the costs of employment for small businesses and fight against abusive tax schemes.
The bill will
- Introduce a new £2,000 Employment Allowance for every business and charities from April 2014, which will reduce the amount employers pay in national insurance contributions (NICs).
- Extend the general anti-abuse rules to cover NICs, and help to tackle tax avoidance
- Prevent the use of offshore employment payroll companies to avoid employers having to pay NICs
- And it will remove the presumption that limited liability partnership members are treated as self-employed, which is seen as a tax loophole