The CIOT’s briefing on the National Insurance Contributions (Secondary Class 1 Contributions) Bill includes the following observations:
the increase in employers’ NICs extends the differential in the tax burden between those in employment and those engaged as self-employed with that imbalance remaining ‘one of the biggest issues to be addressed if the tax system is to keep pace with evolving working practices’.
higher employers’ NICs could increase the likelihood of employers seeking to mitigate against the extra costs of employing staff for example by limiting wage rises outsourcing or managing with fewer workers.
instances of ‘false self-employment’ could increase where businesses do not necessarily appreciate the rules around arrangements involving workers not directly employed by them – and HMRC will need to be ready to pick this up.
On employment status tax and NICs the CIOT urges the Government to work with all stakeholders with a...
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The CIOT’s briefing on the National Insurance Contributions (Secondary Class 1 Contributions) Bill includes the following observations:
the increase in employers’ NICs extends the differential in the tax burden between those in employment and those engaged as self-employed with that imbalance remaining ‘one of the biggest issues to be addressed if the tax system is to keep pace with evolving working practices’.
higher employers’ NICs could increase the likelihood of employers seeking to mitigate against the extra costs of employing staff for example by limiting wage rises outsourcing or managing with fewer workers.
instances of ‘false self-employment’ could increase where businesses do not necessarily appreciate the rules around arrangements involving workers not directly employed by them – and HMRC will need to be ready to pick this up.
On employment status tax and NICs the CIOT urges the Government to work with all stakeholders with a...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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