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

[flashbac]

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.)

As I had just posted I was listening to an economist rounding up the market reaction, so pretty close to real time analysis

This was about then too

https://www.ft.com/content/ae73cfba-b9c4-4c5c-843e-d45ada55db95

They have excluded the NHS from these additional payments

After campaigning so hard for Brexit, you’d think the farmers would be keeping their head down for a while when it comes to the country’s finances.

The ones it hits the hardest are business where a large number of the staff are part time, because most of the hike comes from the threshold increase rather than the rate increase. We have our own business, it's only open part time hours so most of the staff are also part time. No way round that. Real living wage employer but because the staff are part time the hit is about 6%.

We had budgeted about 5% for pay rises which is about right for the latest real living wage increase. Hadn't planned on having to find the same again down the back of the sofa though.

Labour supporters are hilarious. Farmers are all whingers and Jeremey Clarkeson is the typical example apparently! Charities are made up of fat cat bosses and the staff that work for them are all useless. Business owners are all running ‘unviable’ businesses when they can absorb the largest tax hike in decades and minimum wage hike within 6 months.

Is there anyone other than MW public sector workers that you don’t hate?

Farmers literally provide your food.

Yes and look at the fuss people made about a few tomatoes missing on shelves recently.

They are exempt, for some reason, as are other public service departments. 🤷‍♀️

I have got sympathy for some of this, but I’m not sure Clarkson and Allstrop are the best poster boy and girl for the farming campaign.

There is a large London protest planned.

https://www.dailymail.co.uk/news/article-14030241/Furious-farmers-hold-major-Westminster-protest-Labours-Budget-land-cash-raid-Rachel-Reeves.html

My understanding is the NHS is going to be exempt from paying increase NI - GP practices aren't but are lobbying for it.

Oh yes indeed, you would've thought so wouldn't you!

Indeed

Yep

Your calculations are wrong. If you’re paying NMW your staff costs are going up 9% to 10%. If you’re committed to paying UK-wide RLW your costs are going up about 8.5% (RLW increase plus NI changes).

I don’t believe they will be “exempt” as such. They will be given extra money by the Chancellor from taxation to cover the cost of the NI payroll increase. NHS also has recent pay rises to cover with consequent increase in pensions too. The bill will be enormous.

Why do you think they’d waste time and money for such a convoluted approach when exemption would be so much simpler?

Thank you! I couldn't be bothered addressing the posters doing their sums wrong. It's so annoying how ppl don't read the OP or can't do the maths and make out they are in the right!

I guess because if they didn’t give the money for NI to be paid in the normal way then the true cost of labour in the NHS would not be correctly accounted for. The real costs would be hidden in effect.

In one sense it doesn’t really matter. The cost to the public purse is the same whether it is exempted or given the money to pay it..

Not even that small - I think any company/charity with an NI bill of up to £100k is eligible for employment allowance up to £10kish of their NI costs

I think you'll find it is YOUR maths that isn't 'mathing'.
Furthermore, the Employers allowance is not that much.

That’s 30-ish employees if they’re mostly low paid but with a manager or two.

Employment Allowance allows eligible employers to reduce their annual National Insurance liability by up to £5,000.
It's not much.

Oh I agree it’s not much. And to my mind 30 ish employees is a very small business.

I'm not sure the number of 30 employees is correct either.

We're talking different things.

Overall, the NHS operates with a below average number of managers when compared to the private sector. It is undermanaged, particularly at lower levels of management in direct support of frontline staff.

You're arguing it's top heavy with management. That's another issue. It may also too many senior managers and a too vertical organisation structure.

The NHS can have both too few managers overall and too many senior managers at the same time. They're not incompatible statements.