Press Room.
Business as usual for the government as uk companies are hit by
the “tax on jobs” after all
Next April the increase in earnings threshold of £21 a week will
reduce employment costs but the 1% increase already announced by
the Labour Government is not being reversed, as had previously been
suggested says leading business and financial adviser Grant
Thornton UK LLP.
Clive Fathers, Tax Partner at Grant Thornton says: "Although the
1% NIC hike for employees will be offset by higher personal
allowances for those earning less than £100,000, the increase will
directly impact on people's pay slips making moderate and high
earners worse off.
"At first sight the newly announced NIC concessions for all of
the UK outside London and the South East look good, however care
will need to be taken to ensure that the relevant conditions are
met to take advantage of this new relief. Although we can expect
all manner of restrictions to be applied, in essence, the
Government seems to be prepared to pay £5,000 for each 'new job'
created for up to ten new jobs per qualifying business. This is a
total of £50,000 NIC holiday for 52 weeks for some new
businesses."
ENDS
For further information please contact:
Clive Fathers on 0207 728 2632 or clive.fathers@gtuk.com
Nicola Daley at Grant Thornton press office on 020 7728 2244 or
Nicola.daley@gtuk.com
Notes to Editors:
Live Webinar
We will be running a live interactive internet seminar (webinar)
at 4.00pm on June 24, with a panel of experts who will be
commenting on what the announcement means for the UK economy, taxes
and the public sector. Viewers will be able to email questions in
to the live discussion.
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