Emergency Budget: National Insurance increases

Kashflow logo
3

The National Insurance contribution rate rises proposed by Mr Darling will take effect next April, as confirmed by the Press Notice issued after today's Budget.

Both the 1% rise for employees and employers will be introduced as planned, although the government stated that it intended to abolish these rises as part of the general election campaign.

To mitigate the effect of the changes, there will be a significantly above inflation rise in the employer threshold for NIC from April 2011, the entry point for contributions rising by £21 above indexation. This means that employers with staff earning at a relatively modest salary may see their employee NIC fall as a result, but those employing higher paid staff will suffer an increase in employment costs.

Employees will bear the...

Please Login or Register to read the full article

The full article is available to registered AccountingWEB.co.uk members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.

Rebecca Benneyworth
Partner
Rebecca Benneyworth Training Consultants
Share this content

Replies

Please login or register to join the discussion.

avatar
23rd Jun 2010 19:43

NIC is a nick

"To mitigate the effect of the changes, there will be a significantly above inflation rise in the employer threshold for NIC from April 2011, the entry point for contributions rising by £21 above indexation" - scuse me.

  significantly = LOADS

compared to cancelling the 1% increase it is weeing in the wind?

come next april there will gnashing from the serfs, and the men on yachts......

 

 

Thanks (0)
23rd Jun 2010 22:33

Decimal point?

A reduction from £5.12 to £2.62 doesn't look like a reduction of only 4.9% to me.

I think you mean 48.8%.

David

Thanks (0)
avatar
By pressco
25th Jun 2010 12:32

NI Class 4

Have the personal allowance and Class 4 lower limit been aligned?

 

I can't see it anywhere at the moment.

Thanks (0)