Next Year's Rise in NI

Next Year's Rise in NI
Alison Clynes
Written by Alison Clynes
Sunday, 18 April 2010 23:00

With Alistair Darling's recent budget it looks like national insurance is set to rise next year. If you're an employer this is very significant, as if you choose to process payroll in-house it is your responsibility to deduct the correct amount from your employees wages and pay it to HMRC. Of course, if you choose payroll outsourcing, such as Dataplan Payroll's managed payroll services, then you can guarantee that NI payments will be made accurately and efficiently on your behalf.

If Labour stay in power after the election then NI is set to increase next year by 0.5% - on top of the 0.5% rise that was announced back in 2008. And whether you're an employee or an employer, it is likely you will feel the impact.

For employees earning more than £20,000, you will unfortunately be affected by the rise, which is likely to increase the need for payroll outsourcing. More seriously, if you're a business paying salaries above £14,000 then you will unfortunately be affected by the levy.

These rises, which go right to the heart of small businesses, could see firms landed with millions of pounds in additional debt: just exactly what they don't need amid a recession.

The Conservatives are supposedly planning to scrap the planned increase in NI, which is another possibility.

If you want to ensure that you're making the correct NICS at a time when the future rate looks uncertain, then why not choose managed payroll services and payroll outsourcing from Dataplan Payroll: the pure payroll solution.

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