Catherine Robins considers the impact for employers of the income tax and national insurance changes announced in the emergency Budget
The June 2010 emergency Budget contained no surprises in relation to employment taxes for those who had read the fine print of previous announcements. However for many employers it will come as a surprise that Labour's 1% rise in employers' NICs has not been reversed for all employers.
What was announced?
The main announcements in relation to employment taxes were:
the 50% additional rate of income tax for those earning over £150 000 will remain for the present time;
the 1% increase in employees' national insurance contributions proposed by the previous Government will go ahead in April 2011 but the effect will be offset or mitigated for lower earners by an increase in the personal allowance from £6 475 to £7 475;
the 1% increase in employers' NICs proposed...
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Catherine Robins considers the impact for employers of the income tax and national insurance changes announced in the emergency Budget
The June 2010 emergency Budget contained no surprises in relation to employment taxes for those who had read the fine print of previous announcements. However for many employers it will come as a surprise that Labour's 1% rise in employers' NICs has not been reversed for all employers.
What was announced?
The main announcements in relation to employment taxes were:
the 50% additional rate of income tax for those earning over £150 000 will remain for the present time;
the 1% increase in employees' national insurance contributions proposed by the previous Government will go ahead in April 2011 but the effect will be offset or mitigated for lower earners by an increase in the personal allowance from £6 475 to £7 475;
the 1% increase in employers' NICs proposed...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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