Sage found that 11 per cent of small business owners are unaware they are able to claim back the first £2,000 of their NIC. They have calculated as much as £275 million could be left unclaimed – despite the process being as simple as ticking a box when a business runs its payroll.
The Employment Allowance rebate came into force in April this year and was introduced in the 2013 Budget by Chancellor George Osborne. It was designed as a tax break for small businesses to allow them to invest the money elsewhere in their startup.
According to the snap poll of small firm bosses, the vast proportion of small businesses (89%) said they have claimed the money back. However, 9 per cent said they had not checked if they were eligible and a further 2 per cent said they had not made any effort to claim.
With an estimated 1.25 million employers in the UK eligible to benefit from the rebate, it could mean small businesses are missing out on up to £275 million which could be used to grow and expand their businesses.
Jonathan Dowden, payroll category manager for Sage UK, said: “Although this is only a small proportion of businesses, the huge number of eligible firms means there is millions of pounds sat in the bank waiting to be claimed.
“If you’re using the latest payroll software claiming the money back should be as simple as ticking a box when doing the payment run. If it is not, you really need to ask some serious questions of your payroll provider.
“That extra £2,000 has the potential for a business to invest in new equipment, help pay off an overdraft, or pay for training for staff. This small amount can go a long way in giving small businesses the confidence to grow and expand.
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