In an article by The Times, London Tax Associate Christy Wilson discusses a potential rise in employers' national insurance contributions and how the burden of this increased employer cost could be passed on to employees.
As The Times reported, Ministers have suggested that Chancellor of the Exchequer Rachel Reeves is considering making employers pay more as one of her budget measures on October 30, with analysts stating that this increase would "ultimately leave workers out of pocket" when employers cut pension contributions, bonuses and other workplace benefits in order to recoup the higher costs.
Christy said this could also mean fewer salary increases or even make employees redundant to cut costs and protect profits. "Any increase in employer national insurance contributions will add to the overall expenses of businesses," she said. "It is the responsibility of an employer to pay the tax, but it is likely that the burden of an increase would ultimately be passed onto employees."
"What a rise in employers' national insurance would mean for you," The Times, October 15, 2024
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