Small Businesses Losing £275m in Unclaimed NIC
9% of small businesses are unaware of eligibility for annual £2,000 National Insurance rebate and further 2% haven’t bothered to claim
A recent study revealed that one 10th of small and mid-sized businesses are missing out on an annual £2,000 Class 1 National Insurance Contributions (NIC).
An estimated 1.25 million employers are eligible for the rebate but the study, released by Sage, found that 9% of small firms have not checked if they qualify and 2% have just failed to make a claim. This 11% of small and medium firms could be missing out on a total of £275m.
The £2,000 is part of the Employment Allowance rebate, which launched in April by Chancellor George Osborne as part of the 2013 budget. The process of claiming back NIC is a straightforward process with all businesses who have applied for the rebate stating it was “simple”.
Manager at Sage UK, Jonathan Dowden, discussed the report and the potential of the additional cash for small and mid-sized businesses:
“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.
“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.”