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The NI changes are going to cost my organisation £1000 per employee

542 replies

flashbac · 01/11/2024 06:41

The NI changes are going to cost my organisation on average £1000 per employee, The lowering of the threshold alone is going to cost around £600 extra per employee.

We are heavily regulated with fixed income. We're a not for profit. Our customers expectations are increasing. We are now most likely going to have to somehow reduce our headcount now, and payrises for April are going to be off the table.

Just shaking my head really. Our employees don't deserve this. Hard to see how this isn't a tax on jobs.

The lowering of the threshold also means employers have to pay for more workers, because part time salaries are now dragged into it.

A lot of people reading this won't care. All I can say is this NI increase will also affect you. just think about Local authorities, childcare providers and other services. Do you think it won't affect your Councils services/tax bills, to give one example?

(I'm not a Tory bot btw, before anyone starts accusing me of being one. I voted Remain, don't support the Tories at all, can't stand Boris and his cronies.)

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IMustDoMoreExercise · 01/11/2024 10:17

Diaryfear · 01/11/2024 10:14

So you'd have preferred a wealth tax of some sort? And stayed in the country to pay it 🤣

What are you talking about (but then I am not suprised that people who think like you don't make any sense)?

I would have preferred a budget that encouraged enterprise and didn't punish the people who pay your public sector wages and pensions.

EasternStandard · 01/11/2024 10:16

AnonymousBleep · 01/11/2024 10:14

If you're an SME, you're not affected by the NI rise. NI thresholds have been frozen so that over a million SMEs will see no increase in the tax they currently pay, and over 800,000 people will continue to pay no tax for the next year. If you're a larger employer, you should have the resilience to absorb a 1.5% increase in National Insurance.

Where do people think this money should come from? The country is patently broken and costs money to fix, yet people moan if individual taxes go up and moan if taxes on business go up. This budget actually seems pretty fair in its attempt to tax those who can most afford it. That's what Labour governments do.

One issue is the cost of debt which is going up due to the budget

friendlycat · 01/11/2024 10:16

Brananan · 01/11/2024 10:13

Don't you think an income tax rise would have been fairer and more effective? I do.

That would have been the most sensible approach yes.

RedToothBrush · 01/11/2024 10:15

Brananan · 01/11/2024 10:13

Don't you think an income tax rise would have been fairer and more effective? I do.

I do.

I do think this budget was more about optics rather than tackling underlying issues though.

And I do think the people most negatively effected will, ironically, be the ones with minimum wage jobs or on benefits.

MrsPeregrine · 01/11/2024 10:15

Ottersmith · 01/11/2024 10:10

Yes but people just need to pay taxes for services to work. I can't understand how people have come to think they shouldn't have to.

That’s fine but they specifically said there would be no increase in taxes on working people. I can only guess why they chose not to say anything right before an election. And also a lot of the decisions they have taken since forming government have cost billions. I have no issue with investment in services, but they should have been upfront about their plans in the first place.

AnonymousBleep · 01/11/2024 10:14

If you're an SME, you're not affected by the NI rise. NI thresholds have been frozen so that over a million SMEs will see no increase in the tax they currently pay, and over 800,000 people will continue to pay no tax for the next year. If you're a larger employer, you should have the resilience to absorb a 1.5% increase in National Insurance.

Where do people think this money should come from? The country is patently broken and costs money to fix, yet people moan if individual taxes go up and moan if taxes on business go up. This budget actually seems pretty fair in its attempt to tax those who can most afford it. That's what Labour governments do.

Diaryfear · 01/11/2024 10:14

IMustDoMoreExercise · 01/11/2024 10:13

Ha ha.

I hope that you are still laughing when there is no private sector to pay taxes to pay for your public sector wages and pensions.

Good luck. I am rich enough to be able to leave the country when that happens, I hope that you are too.

So you'd have preferred a wealth tax of some sort? And stayed in the country to pay it 🤣

IMustDoMoreExercise · 01/11/2024 10:14

JRSKSSBH · 01/11/2024 09:22

What an obnoxious comment.

Yes, exactly.

I hope that they are still laughing when there is no private sector to pay taxes to pay for their public sector wages and pensions.

IDontHateRainbows · 01/11/2024 10:14

Every time I read a whinging post about the increases in NI to raise tax moneyh I have a read about one of the many 'I called an ambulance and was told there were none' or 'what happens if you go to A and E seriously ill' threads and see why this is necessary.
Helps to give a bit of perspective.
Basically, we are all going to the dogs as a result of the economy being trashed since 2008. And it's not just here it's other countries too so we can't just blame it on 'the government' - although we do seem particularly incompetent compared to our european peers it's not like they have escaped completely unscathed.

TheTidyBear · 01/11/2024 10:14

Brananan · 01/11/2024 10:11

I'm a bit bored with having to explain how businesses work to people who are so woefully ill informed.

Hence why they're not the ones who have the money to bail the Country out. Just expect us to do it for them.

Unfortunately it's not going to happen.

Slinky1460 · 01/11/2024 10:13

What is frustrating is that these increased contributions are taken to throw more money at public services such as the NHS. Pouring more money into the NHS, without reform, is like lighting a fire under a bag of £50 notes.

IMustDoMoreExercise · 01/11/2024 10:13

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

Ha ha.

I hope that you are still laughing when there is no private sector to pay taxes to pay for your public sector wages and pensions.

Good luck. I am rich enough to be able to leave the country when that happens, I hope that you are too.

TheTidyBear · 01/11/2024 10:13

SnapdragonToadflax · 01/11/2024 06:50

Well, the money has to come from somewhere. The Tories have made people believe you shouldn't have to pay taxes... but that means we have dire public services.

Your situation sounds unusual, in that you have fixed income and are not for profit. Is there anything you can do to raise money in a different way?

Well the money is not coming from here. Losses of jobs and business confidence isn't going to result in more tax.

It's not unusual, pretty much every charity and non-profit is going to suffer in the same way,

Brananan · 01/11/2024 10:13

Ottersmith · 01/11/2024 10:10

Yes but people just need to pay taxes for services to work. I can't understand how people have come to think they shouldn't have to.

Don't you think an income tax rise would have been fairer and more effective? I do.

mrshoho · 01/11/2024 10:12

Genevieva · 01/11/2024 08:25

The increase in NI will cost my employer over £1,000 just for me. I hate to think what the total will be.

Could you tell us how you've worked out this cost please.

Brananan · 01/11/2024 10:11

MumofCandR · 01/11/2024 10:08

If 1.25% affects businesses so badly they have more significant financial issues to address. Fact

I'm a bit bored with having to explain how businesses work to people who are so woefully ill informed.

Ottersmith · 01/11/2024 10:10

MrsPeregrine · 01/11/2024 10:07

Reeves knew that many businesses will have to do the same in order to keep afloat. They promised not to increase taxes on working people. But that is exactly what they have done. Even if it is by the back door. And also, who says business owners aren’t working people? They are so they’ve broken one of their main election promises. Sunak warned that they would increase tax massively and that is exactly what they have done.

Yes but people just need to pay taxes for services to work. I can't understand how people have come to think they shouldn't have to.

MrsPeregrine · 01/11/2024 10:09

Diaryfear · 01/11/2024 10:06

Answer the question then? I can't see a lie. If there was one I think the right wing press woukd be screaming it in the headlines by now, don't you?

Edited

Well they promised they wouldn’t increase taxes on working people and yet here we are…

Ottersmith · 01/11/2024 10:08

From what I can understand.. Tories didn't have enough tax revenue, but the poorest paid for it dearly in no public services, libraries closed, no sure start, bad NHS, social care etc. But Labour see we need these services but we have to get the money from somewhere and businesses seems the most palatable. Yes some people will be laid off etc but maybe their elderly Mother or disabled child will get proper social care they deserve.

But it seems the non profits should be exempt? Also should have made state pensions exempt from paying once over the tax free threshold.

MumofCandR · 01/11/2024 10:08

Brananan · 01/11/2024 10:04

If you think this doesn't impact businesses hugely, you know very little. But the government seems the same, so you are in company at least.

If 1.25% affects businesses so badly they have more significant financial issues to address. Fact

ClytemnestraWasMisunderstood · 01/11/2024 10:08

Lamelie · 01/11/2024 09:19

Can you explain more?

here you go!
https://www.bbc.co.uk/news/articles/cgl409gww1go

At the moment, GPs will not be included because they work out-with the NHS contract system - but then again, when the NHS was established, GPs were very anti- it (potential loss of income), so have always been rumunerated and managed out-with NHS employment policies, etc

As they alw

A GP sits at his desk next to an empty patients chair in his surgery, seen through an open door. He is wearing a shirt and dark trousers and is looking thoughtful.

GPs, care homes and hospices voice concern over Budget tax rises

The NHS is exempt from the rise in employer National Insurance contributions, but private providers are not.

https://www.bbc.co.uk/news/articles/cgl409gww1go

MrsPeregrine · 01/11/2024 10:07

BuzzieLittleBee · 01/11/2024 10:04

Our business will have to take the increased NI contributions from the budget line we had put in for salary increases. There's nowhere else it can come from. And to make it balance next year we will have to delay the additional headcount we had planned and existing people will have to work a bit harder.

Reeves knew that many businesses will have to do the same in order to keep afloat. They promised not to increase taxes on working people. But that is exactly what they have done. Even if it is by the back door. And also, who says business owners aren’t working people? They are so they’ve broken one of their main election promises. Sunak warned that they would increase tax massively and that is exactly what they have done.

Brananan · 01/11/2024 10:07

I've already answered this question with an example.

Diaryfear · 01/11/2024 10:06

MrsPeregrine · 01/11/2024 10:02

Are you serious?

Answer the question then? I can't see a lie. If there was one I think the right wing press woukd be screaming it in the headlines by now, don't you?

BuzzieLittleBee · 01/11/2024 10:04

Our business will have to take the increased NI contributions from the budget line we had put in for salary increases. There's nowhere else it can come from. And to make it balance next year we will have to delay the additional headcount we had planned and existing people will have to work a bit harder.

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