During the Emergency Budget announcement on Tuesday 22nd June, Chancellor George Osborne announced changes in National Insurance to take effect by 2011, including some affecting the actual employer and employee contributions.
In summary:
The threshold at which employers start to pay National Insurance Contributions will be raised by £21 per week above indexation in April 2011
- Outside the Greater South East region, new businesses will be exempted from up to £5,000 of employer contributions for each of their first 10 employees hired
- Employee, employer and self-employed rates of National Insurance contributions (NICs) will increase by 0.5 per cent from April 2011 in addition to the 0.5 per cent increase announced in 2008.
- The level at which people start to pay NICs will increase in April 2011 by £570 above the level previously announced. Those paying the standard employee rate and earning under £20,000 will pay less NICs overall as a result of these changes.
There is nothing employees need to do, any changes should be automatically processed by your employer’s payroll department. If you are self-employed or an employer and would like further information on the changes, how they will affect you, how and when to implement them, follow this useful link:
http://www.direct.gov.uk/en/Nl1/Newsroom/PreBudgetReport2009/DG_183037Of course, Swann is more than happy to discuss these changes with you and help where we can.
