Employers' NICs will rise by 1% in April 2011. Employers of low earners will not suffer an increase but those with employees earning just over £20,000 will see an increase in their NIC bill. Employees' NICs are also due to increase by 1%. Increases in the personal allowance offset this increase for many, but higher earning employees will see a reduction in their take-home pay from April 2011, which may drive up salaries. Whilst share incentives taxed as capital are attractive in place of bonuses, for many employers there is little that can be done to reduce their NIC bill.
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