Tom Richards review the top five tax developments affecting employment taxes
Five key employment tax developments in 2011 are:
With effect from 6 April 2011 primary (employee) NICs were increased by one percentage point to 12% on income between the primary earnings threshold (£7 228 in 2011/12) and the upper earnings limit (£42 484 in 2011/12) and 2% on income above the upper earnings limit. Secondary (employer) NICs were also increased by one percentage point to 13.8% on income above the secondary threshold (£7 072 in 2011/12). Class 1A contributions (paid by employers on benefits in kind which are subject to NIC) have also been increased by one percentage point to 13.8%.
Why it matters: The increased rates of NIC represent a significant additional cost...
