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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.)

OP posts:
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Didimum · 01/11/2024 09:31

FiveFoxes · 01/11/2024 09:23

I am pretty sure Councils are NOT exempt from employers NI or protected from the rise. Please remember Councils are County, Borough, Town and Parish.

Therefore, increases in NI and minimum wage will be passed on in Council tax. And as Councils are 'service industries' where most of the expense is employeed, that's going to be quite a lot.

Please can you provide evidence of your claim?

There’s an article on the BBC on the exemptions – you are welcome to go and look it up.

Council employees come under public sector. I’m sure the nuances will become clear, just as the Department for Health and Social Care have said they will for GPs, care homes and hospices.

The majority of councils have been raising council tax to the cap year on year anyway. Nothing new there. Will have to await news on if caps will be raised.

Viviennemary · 01/11/2024 09:28

The government have been subsidising low wages for years. Topping up with benefits. About time employers put their hands in their pockets.

Brananan · 01/11/2024 09:28

JRSKSSBH · 01/11/2024 09:27

Reform is polling very well. I would imagine Farage in power after the next election.

I think he will do amazingly.

I say that with complete horror.

I have a terrible feeling that Labour have really fucked this up.

JRSKSSBH · 01/11/2024 09:27

Gall10 · 01/11/2024 09:26

Who did you vote for? Tories to run the country even further into the ground? Fascist farage and his unwashed, unruly mob? Lib Dem’s so they could go on supporting the tories & vote for benefit cuts again? I’m interested in your decision.

Reform is polling very well. I would imagine Farage in power after the next election.

Gall10 · 01/11/2024 09:26

Dbank · 01/11/2024 07:43

I didn't vote labour, but I would be embarrassed now if I had.

And we thought Boris was a liar....

Who did you vote for? Tories to run the country even further into the ground? Fascist farage and his unwashed, unruly mob? Lib Dem’s so they could go on supporting the tories & vote for benefit cuts again? I’m interested in your decision.

JRSKSSBH · 01/11/2024 09:26

frenchnoodle · 01/11/2024 07:39

🤷 that's what was voted for when labour were elected. Where did you think the money was going to come from?
Unfortunately the poor always get fucked over.

Exactly. Labour has rewarded it Union paymasters. The budget was traditional Labour through and through.

Didimum · 01/11/2024 09:25

Brainstorm23 · 01/11/2024 09:04

GP practices are not as despite providing NHS services they are "private" businesses.

The Department for Health and Social Care have said they are get to confirm details for private businesses providing NHS services.

EasternStandard · 01/11/2024 09:25

SpinyNorma · 01/11/2024 09:22

It sets out £8 billion in planned tax increases and they have imposed £40 billion.

Then there's also the watering down of the carried interest changes, the promise to fund increases in day to day spending through growth rather than increased tax and of course "Labour will not increase taxes on working people" to name a few.

This

And it looks like the markets are digesting the budget and we'll just be paying more for that debt instead

EasternStandard · 01/11/2024 09:24

Papyrophile · 01/11/2024 09:14

First, you have to find someone who wants to buy it!!

DH has been trying to sell his business to retire for the last four years. In light of Wednesday's Budget announcements, the potential purchaser list has got even shorter.

Sorry to hear that @Papyrophile

Ohthatsabitshit · 01/11/2024 09:23

@flashbac out of interest how were your employees treated during the pandemic? How many of them use the infrastructure paid for by taxes? We have to learn to work harder because we have to pay for coasting and then massive spending and in the future the weight of the elderly.

Diaryfear · 01/11/2024 09:23

WeWillGetThereInTheEnd · 01/11/2024 09:20

It is going to cause some pain, I'm sure, but not to Local Authorities (as you OP states) or the NHS/schools, as public sector employers will get a rebate.

Will local authorities’ social services and ICBs get an uplift from government for all the careworkers they fund indirectly such as respite services, agencies for domiciliary care and care homes - or will the services to those people just be cut, because local authorities and ICBs can’t fund these increases by shaking the magic money tree?

Edited

I said, it will be painful. Social care is getting more extra money than the increase will cost them though.

FiveFoxes · 01/11/2024 09:23

Didimum · 01/11/2024 08:30

NHS and public sector (so councils, among others) are exempt from the NI rise.

I am pretty sure Councils are NOT exempt from employers NI or protected from the rise. Please remember Councils are County, Borough, Town and Parish.

Therefore, increases in NI and minimum wage will be passed on in Council tax. And as Councils are 'service industries' where most of the expense is employeed, that's going to be quite a lot.

Please can you provide evidence of your claim?

JRSKSSBH · 01/11/2024 09:22

This reply has been deleted

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

What an obnoxious comment.

SpinyNorma · 01/11/2024 09:22

Diaryfear · 01/11/2024 09:13

It sets out exactly what they planned to do and nothing they've done is different to that. If you CBA to read it, that's your choice

It sets out £8 billion in planned tax increases and they have imposed £40 billion.

Then there's also the watering down of the carried interest changes, the promise to fund increases in day to day spending through growth rather than increased tax and of course "Labour will not increase taxes on working people" to name a few.

MonkeyToHeaven · 01/11/2024 09:22

Brananan · 01/11/2024 07:43

"The money has to come from somewhere"

I was hoping it would come from the very rich and the massive corporations, not our food security and small businesses.

Quite. Which it likely would have in 2017(along with some hefty borrowing). But Labour's leader was crazy, warning about the collapse of the NHS, raging about the housing crisis, banging on about the injustices in Palestine. None of which were real concerns apparently.

Brananan · 01/11/2024 09:21

Papyrophile · 01/11/2024 09:14

First, you have to find someone who wants to buy it!!

DH has been trying to sell his business to retire for the last four years. In light of Wednesday's Budget announcements, the potential purchaser list has got even shorter.

Same here.

DogInATent · 01/11/2024 09:21

Womblewife · 01/11/2024 07:42

The nhs will use the extra money in a stupid way and employ more managers - again. So
unless they have a clear guided plan for the spending - all the cash raised crippling businesses and preventing pay rises will be frivolously thrown down the drain on nonsense .

The NHS employs fewer managers than is the average in the private sector. If anything, the NHS suffers from having too few managers and expecting frontline staff to carry out management functions that take then away from frontline duties.

This tired old trope of "the NHS has too many managers" is a slogan trotted out by idiots people that haven't a clue what management is, and have no idea how the NHS functions.

Diaryfear · 01/11/2024 09:21

DragonGypsyDoris · 01/11/2024 09:16

And your evidence for this claim is ... ???

Umm, that the budget specifically says the NHS and other public sector employers are exempt....

Slimmingtime · 01/11/2024 09:21

Fairyliz · 01/11/2024 06:55

I wondered about this. If the NHS employs 1.5 million won’t the extra money Labour put into it go on increased NI contributions?

Yes, and all the pay rises given and the min wage increase. There will be sod all left to make a difference after they pay for all this. It’s just smoke and mirrors.

WeWillGetThereInTheEnd · 01/11/2024 09:20

It is going to cause some pain, I'm sure, but not to Local Authorities (as you OP states) or the NHS/schools, as public sector employers will get a rebate.

Will local authorities’ social services and ICBs get an uplift from government for all the careworkers they fund indirectly such as respite services, agencies for domiciliary care and care homes - or will the services to those people just be cut, because local authorities and ICBs can’t fund these increases by shaking the magic money tree?

Beekeepingmum · 01/11/2024 09:20

One thing that made a mark recently was I heard someone say if you want to raise a billon you need to increase the tax on a million people by £1000. Therefore to raise 20bn you need to do so to 20 million people. Of course it will effect quite a lot of people. It doesn't help that the tories had a give away budget for their last one to try and get more votes.

Diaryfear · 01/11/2024 09:19

.

ClytemnestraWasMisunderstood · 01/11/2024 09:19

DragonGypsyDoris · 01/11/2024 09:16

And your evidence for this claim is ... ???

Ooh, how very challenging of you. Two question marks after the unnecessary elipses
From a vsm in the nhs.

Lamelie · 01/11/2024 09:19

ClytemnestraWasMisunderstood · 01/11/2024 07:32

It is likely that public service employers will not have tobpay the increase in NI

Can you explain more?

EasternStandard · 01/11/2024 09:19

Diaryfear · 01/11/2024 09:13

It sets out exactly what they planned to do and nothing they've done is different to that. If you CBA to read it, that's your choice

So everyone missed the highest tax rises since 1993 bar you?

The press included. You must be filtering a lot out atm, bar that manifesto of course.