Data released by HM Treasury at the end of July reveals that 725,000 employers across the UK are benefitting from the Employment Allowance.

The allowance reduces the amount of employer National Insurance by up to £2,000 in a full tax year. The deduction is automatically made by most payroll software products including HMRC’s online service.

It is estimated that up to 1.25 million businesses and charities will benefit from the Employment Allowance and approximately 450,000 employers won’t have to pay any employer National Insurance contributions at all.

Viewed regionally, the take up for the allowance seems to highlight variations in economic activity across the regions. Almost 30% of the claims made are by businesses in London and the South East of England. This is underlines the difficulty that government must be experiencing in directing the monetary value of these reliefs into the regions that are in most need of support. At present thriving businesses in greater London and the south east are benefitting from a further stimulus that poorer areas of the UK do not seem to be experiencing.

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