The initiative, which launched on 6 April, allows employers to reduce the amount of NI contributions they pay for employees by up to £2,000.
Mr Leahy, head of communications at Bank of Cyprus UK, said: “When cash flow is tight for businesses, the allowance presents an opportunity for owner-managed firms to cut costs, reinvest the money they save, or give a boost to salaries for staff to improve morale and retention.”
According to the bank, almost a third of firms are completely unaware of the change. This means thousands of businesses are losing out on tax breaks that could be used to reduce costs or boost wages.
Mr Leahy said: “At a time when small businesses need government support to help nurture them through a fragile economic recovery, it is a concern that a significant percentage of businesses are not aware of this initiative.”
Adviser view:
Carl Melvin, director of Bridge of Weir-based Affluent Financial Planning, said: “It is not surprising at all that many businesses are unaware of this. The issue is a lack of clarity on the part of the government.”
