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...
Rebecca trained in London with Kidsons and, on qualifying, spent some time as Chief Accountant of a manufacturing company. She now has her own small practice in Gloucestershire that comprises of owner managed businesses and small companies.
She also lectures extensively for a range of professional bodies, accountancy firms, commercial organisations and the Inland Revenue. Demand has grown for Rebecca on the lecture circuit where she is well known for her refreshing, enthusiastic and entertaining presentation style as well as having a practical and down-to-earth approach to tax.