With employment costs continuing to rise, many small businesses are looking for legitimate ways to reduce the cost of employing staff.
The good news is that there are several government schemes and tax reliefs available that many employers either do not know about or are not claiming.
Here are five areas worth checking.
1. Take on an apprentice
Apprentices can be a strong way to develop new talent while benefiting from financial support.
Depending on the apprentice's age and circumstances, training costs may be fully funded, and additional support payments may also be available.
2. Check for local grants
Many local authorities, combined authorities and regional growth organisations offer grants to businesses that create jobs, recruit apprentices or invest in staff training.
These schemes vary across the UK and are often time limited, so businesses can miss out simply because they did not know they existed.
3. Employ young workers
Younger employees can sometimes cost less to employ.
National Minimum Wage rates vary depending on age and apprenticeship status.
In addition, employers generally do not pay employer National Insurance on qualifying employees under the age of 21 up to the relevant threshold.
4. Hire veterans
Businesses employing qualifying veterans may be able to claim relief from employer National Insurance contributions for the veteran's first year of civilian employment.
This scheme can reduce employment costs while supporting former members of the Armed Forces as they move into civilian work.
5. Claim the Employment Allowance
Many eligible employers can reduce their annual employer National Insurance bill through the Employment Allowance.
For qualifying businesses, this can reduce the amount of employer National Insurance payable each tax year by a significant amount.
Bonus tip: Small Employers' Relief
If your business qualifies as a small employer for statutory payments, you may be able to recover more than 100% of certain statutory payments such as Statutory Maternity Pay.
This can make a real difference to the cost of supporting employees during periods of family leave.
Where can I find official guidance?
Check the official guidance for each area:
- Get funding for apprenticeship training
- Apprenticeship funding
- Claim National Insurance contributions relief for veterans as an employer
- Employment Allowance
- Employment Allowance: further guidance for employers
- Recover statutory payments
For grants, the exact route depends on where your business is based, so it is worth checking your local council, combined authority or growth hub website.
Are you claiming everything you are entitled to?
Every business is different, and the savings available will depend on your circumstances.
If you want help checking which schemes and reliefs may apply to your payroll, get in touch with us.