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edders23
 Post subject: Budget NI changes
PostPosted: Wed Oct 30, 2024 1:08 pm 
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so reducing the threshold for employers and upping it to 15 % that means a massive hit for many businesses.

I wonder if quite a number of businesses will start looking at the self employment route for their workforce

And shes putting income tax thresholds up but not until 2028 :roll:

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grandad
 Post subject: Re: Budget NI changes
PostPosted: Wed Oct 30, 2024 5:22 pm 
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edders23 wrote:
so reducing the threshold for employers and upping it to 15 % that means a massive hit for many businesses.

I wonder if quite a number of businesses will start looking at the self employment route for their workforce

And shes putting income tax thresholds up but not until 2028 :roll:
Don't forget that most employers qualify for employment allowance which means that employers don't pay the first £5000 of class 1 employers national insurance contribution and that this has been more than doubled in the budget so you need to have quite a few employees earning quite a bit before any class 1 employer contributions are payable.
The lowering of the threshold for employer contribution going down to £5000 will be more of a concern.
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edders23
 Post subject: Re: Budget NI changes
PostPosted: Wed Oct 30, 2024 5:59 pm 
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My take on the speech was that the allowance was reduced to 5000 ONLY for employers and employee contributions start at the original allowance rate

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Sussex
 Post subject: Re: Budget NI changes
PostPosted: Thu Oct 31, 2024 9:11 am 
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I’m still trying to work out where any ‘growth’ is going to come from.

Did people who voted Labour really vote for stagnation?

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grandad
 Post subject: Re: Budget NI changes
PostPosted: Thu Oct 31, 2024 10:18 am 
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Sussex wrote:
I’m still trying to work out where any ‘growth’ is going to come from.


So are the OBR.
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edders23
 Post subject: Re: Budget NI changes
PostPosted: Thu Oct 31, 2024 5:53 pm 
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I've just waded through a 47 minute long video on you tube by the institute for fiscal studies

They also calculate that growth will be poor but more interestingly reckon that the tax rises will only bring in £30 billion not £40 billion due to the negative effects elsewhere compensating for the rise.

They also predict a sharp rise in self employment as businesses move staff from salaries to contractor status.

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wannabeeahack
 Post subject: Re: Budget NI changes
PostPosted: Sun Nov 03, 2024 6:05 pm 
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grandad wrote:
Don't forget that most employers qualify for employment allowance which means that employers don't pay the first £5000 of class 1 employers national insurance contribution and that this has been more than doubled in the budget so you need to have quite a few employees earning quite a bit before any class 1 employer contributions are payable.
The lowering of the threshold for employer contribution going down to £5000 will be more of a concern.


Do some maths for me

5000 part time employees all on the NMW, mostly on between £5000 to £9000 per year

All will therefore be a new tax burden under Robber Reeves new E.N.I. levels (Zero now to 15% come April)

Calculate the nett bill (deduct any tax SAVINGS due to lower profits and allow for the £10,000 Employment Allowance

Employers’ national insurance contributions will rise by 1.2 percentage points to 15% from April 2025. The threshold at which companies start to pay contributions on an employee’s salary will also be lowered from from £9,100 per year to £5,000.

£4.8M?




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grandad
 Post subject: Re: Budget NI changes
PostPosted: Mon Nov 04, 2024 9:43 am 
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wannabeeahack wrote:
grandad wrote:
Don't forget that most employers qualify for employment allowance which means that employers don't pay the first £5000 of class 1 employers national insurance contribution and that this has been more than doubled in the budget so you need to have quite a few employees earning quite a bit before any class 1 employer contributions are payable.
The lowering of the threshold for employer contribution going down to £5000 will be more of a concern.


Do some maths for me

5000 part time employees all on the NMW, mostly on between £5000 to £9000 per year

All will therefore be a new tax burden under Robber Reeves new E.N.I. levels (Zero now to 15% come April)

Calculate the nett bill (deduct any tax SAVINGS due to lower profits and allow for the £10,000 Employment Allowance

Employers’ national insurance contributions will rise by 1.2 percentage points to 15% from April 2025. The threshold at which companies start to pay contributions on an employee’s salary will also be lowered from from £9,100 per year to £5,000.

£4.8M?



I worked through something the other day and it worked out that for every 1000 employees it would cost around £1,000,000
So £4.8m is not very far away.
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wannabeeahack
 Post subject: Re: Budget NI changes
PostPosted: Mon Nov 04, 2024 4:47 pm 
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grandad wrote:
I worked through something the other day and it worked out that for every 1000 employees it would cost around £1,000,000
So £4.8m is not very far away.


I guess they might stop paying staff without a school run £100/week each...

:badgrin: :badgrin: :badgrin:

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grandad
 Post subject: Re: Budget NI changes
PostPosted: Mon Nov 04, 2024 6:07 pm 
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wannabeeahack wrote:
grandad wrote:
I worked through something the other day and it worked out that for every 1000 employees it would cost around £1,000,000
So £4.8m is not very far away.


I guess they might stop paying staff without a school run £100/week each...

:badgrin: :badgrin: :badgrin:

I noticed that they have a car on a school run to the school I go to in Grantham. I don't know where they pick up though.
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