‘Job tax’ abolished

George Osborne announced yesterday that any business who takes on apprentices under the age of 25 will be exempt from making a national insurance contribution.

The programme is hopefully going to encourage companies to employ 3 million apprentices during the next parliament. Osborne explained his decision by saying, “When a business is giving a young person a chance in life we’re going to support them not tax them.”

The announcement has been met with positive views from many different areas. Elspeth Orcharton, ICAS director of taxation, has welcomed the idea, saying it is “a good incentive for employers to invest in young talent”. While Simon Walker, director general of the Institute of Directors, said the announcement was “welcome”.