Around 91,000 Yorkshire businesses could see their National Insurance contributions cut by up to £2,000 when the new Employment Allowance is introduced in April 2014.

Across the UK 1.25 million businesses and charities will benefit from the new allowance on employer NICs. In Yorkshire 31,000 will pay no employer NICs at all.

The allowance will mean that a business employing one person on £22,400 will pay no employer NICs on that person’s earnings.

A business employing five adults full-time on the minimum wage will see their employer NICs bill reduced by more than 80 per cent.

The allowance will be available every year, simple to claim and easy to administer. Businesses will confirm their eligibility for the allowance through their payroll processes and up to £2,000 will be deducted from their employer NICs liability over a year.

David Gauke, Exchequer Secretary to the Treasury, said: “The Employment Allowance will reduce the cost of taking on new staff.”