NI Changes - Good news for employers

NI Changes - Good news for employers
Thursday, 13 May 2010 14:16

The coalition government has announced a decision to change the 1% National Insurance increase that was planned for April 2011.

It seems that the NI increase for employers has been dropped. This will save employers £3bn annually. However, the proposed changes from the Labour government still appear to be taking affect for employees.

Employees earning more than £20,800 will see an increase in their NI from April 2011.

This means that most will be spared a major tax increase.

"Small businesses did not want this tax on jobs because clearly it would have been a major barrier to staff retention and job creation and would have hindered economic recovery," said the Forum of Private Business Chief Executive Phil Orford.

"For the majority of employers it would have proved to be an unpopular and unworkable tax rise. Although not perfect, the new coalition government's policy on NI is far better and provides a degree of certainty for business growth now and in the future."

We await the full details in the emergency budget expected Early July

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