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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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amIloud · 01/11/2024 09:54

Public services are so inefficient. So much in savings could be made if the NHS was run properly. It's all a mess.

Chersfrozenface · 01/11/2024 09:55

Brananan · 01/11/2024 09:51

The idea is that you can employ them for 2 months to ensure they aren't useless, then employ them fully.

I thought that was what a probationary period was for.

The Employment Rights Bill does have clauses on probationary periods.

Parker231 · 01/11/2024 09:55

CoralReader · 01/11/2024 07:35

Now is a good time to start supporting the tories then

The Tories and unfunded spending is why Labour are having to make such difficult choices

Brananan · 01/11/2024 09:56

BIossomtoes · 01/11/2024 09:53

And your point is?

I was originally replying to the poster discussing workers rights from day 1, which is a pain for employers if you end up with someone unsuitable. There is a way around it, you can still have a probationary period.

Brananan · 01/11/2024 09:57

Parker231 · 01/11/2024 09:55

The Tories and unfunded spending is why Labour are having to make such difficult choices

Covid and Brexit fucked the Tories.

MrsPeregrine · 01/11/2024 09:57

This reply has been deleted

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

What a stupid comment.

Brananan · 01/11/2024 09:58

Anything in the budget about immigration?

MumofCandR · 01/11/2024 09:58

Part time workers should be pulled in - the issue has been with employers using this loophole to cut costs and increase profits. If the margin is this slim, is it even a viable venture - surely that's the question that should be asked. If the organisation is reliant on such small margins is it sustainable? Clearly not.

BIossomtoes · 01/11/2024 09:58

Brananan · 01/11/2024 09:57

Covid and Brexit fucked the Tories.

The Tories fucked the Tories. Remember Truss?

Kitte321 · 01/11/2024 09:59

Labour could have made different choices. They didn’t need to offer huge pay deals with no agreement on productivity increases or modernisation. They could have completely revolutionised the tax bandings to avoid cliff edges, whilst increases percentages across all bands. They could have done a lot of things…..

What they have done to farmers is appalling and nothing short of a land grab. Changing NI bandings will result in those burdens being redistributed to consumers and employees.

Take nurseries for example - how will they cope? The sector is already in disarray and barely sustainable.

Labour have got this wrong. The money could have come from a million other places. What they have done is resign us to wage stagnation, low growth, poor quality and expensive childcare without fixing any of the real issues in the NHS. Talk about building a house on sand.

FiveFoxes · 01/11/2024 09:59

Didimum · 01/11/2024 09:31

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.

So you don't have evidence.

According to LGA, Councils are not necessarily exempt, they are seeking clarification. Town and Parish Councils are definitely not exempt nor are they covered by the cap as their precepts are separate.

All have to pay the increase in NMW as well.

If the country improves, I am all for tax rises. But I just want people to remember that they will be passed on to everyone, no matter what Labour says about Working people.

Sunbeam01 · 01/11/2024 10:01

This reply has been deleted

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

Jealously is rife.

MumofCandR · 01/11/2024 10:01

295bkq · 01/11/2024 09:04

If I had a business that employed people, I’d be selling it off right away. This budget was disgraceful - hit a minority of people very hard, kept the majority happy. I don’t know why people can’t see that.

Because the fact is it doesn't impact hugely, people are trying to gain political mileage and therefore clutch at straws- remember when NI was 13.25% under Rishi? Oh yes, it was 2 years ago, lest you may have forgotten....

Greyrocked · 01/11/2024 10:02

If you are a small charity or company ensure you are claiming employment allowance if you're eligible (government subsidy to help cover NI costs).

Brananan · 01/11/2024 10:02

Presumably what they've done to farms is part of a plan, rather than ignorance? And if it's part of a plan, presumably that plan is solar parks and housing.

Solar parks while flying in the food we need.

Or apparently China are very keen to buy land in the UK to grow rice for export to China due to global warming, so I guess that could be part of the plan.

MrsPeregrine · 01/11/2024 10:02

BadForBusiness · 01/11/2024 07:44

What lie did they tell?

Are you serious?

Brananan · 01/11/2024 10:04

MumofCandR · 01/11/2024 10:01

Because the fact is it doesn't impact hugely, people are trying to gain political mileage and therefore clutch at straws- remember when NI was 13.25% under Rishi? Oh yes, it was 2 years ago, lest you may have forgotten....

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.

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.

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?

Brananan · 01/11/2024 10:07

I've already answered this question with an example.

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.

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

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

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.

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…

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