Curious about the NI, tax and pay implications?
The mini-budget almost needs no introduction, having dominated news headlines since it was announced by the Chancellor on September 23. But what are some of its key employment and tax implications?Tax cuts such as the reversal of the 1.25 per cent rise in National Insurance Contributions will affect both employers and employees. The change applies to earnings paid from November 6, 2022 and affects Class 1, 1A, 1B and 4 contributions.
The Government has stated that approximately 920,000 businesses will see an average tax cut of £9,600 in 2023-24 as a result of this change. In respect of the impact on employees, the average saving will be £330 next year and £135 this year. Employees need to be earning more than £12,570 to benefit.The Government has also confirmed it intends to repeal the off-payroll working rules from April 6, 2023, both in relation to the public and private sectors.
The off-payroll working rules were introduced because of perceived non-compliance with the pre-existing IR35 rules. The IR35 legislation was introduced to crack down on a perceived method of tax avoidance where individuals would seek to avoid paying employee income tax and NICs by supplying their services through an intermediary and paying themselves in dividends.
That IR35 legislation will remain in place, so it would be incorrect to state that the removal of the off-payroll working rules will create an unfettered ability to provide workers' services through intermediaries.The Living Wage Foundation has increased the voluntary 'real living wage' by over 10 per cent to £10.90 per hour in the UK and £11.95 in London.
Rebecca Fox is a partner at VWV, a national law firm with offices in Clarendon Road, Watford. Get in touch on 01923 919300 or at [email protected]
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Mini-budget will hit council services'The recent “mini-budget” unveiled by the Prime Minister Liz Truss and Chancellor Kwasi Kwarteng has done huge damage to Britain’s financial…
Read more »
We're offering a year-long subscription – at any price you can affordTHE National is launching a pay-what-you-can annual subscription deal to ensure Scots have access to the news that matters during the UK’s cost of…
Read more »
Creeslough: Tributes to Donegal petrol station explosion victimsSupport will be available for those affected by Friday's tragedy, says the Irish government.
Read more »
Creeslough: Tributes to Donegal petrol station explosion victimsTributes are paid to the 10 victims of a huge explosion at a petrol station in the Republic of Ireland Creeslough
Read more »
Motorway closures and shutdowns due to roadworks this week and in OctoberMotorway closures and roadworks on the M6, M65, M60, M57 this week and in October
Read more »