Employer’s NI relief needed to support struggling businesses
As employers face a national minimum wage rise from 1 April and employer’s national insurance increase from 6 April, RSM UK calls for more support from government to help businesses bear the costs.
Susan Ball, employment tax partner, RSM UK, said: “There was little comfort for struggling businesses in yesterday’s Spring Statement, despite recent House of Lords calls for employer’s national insurance relief. As employment costs rise and more regulation is introduced with the Employment Rights Bill, businesses struggling with increasing costs should review their pay and reward structures. We are already seeing an increase in those considering salary sacrifice schemes as a means of rewarding employees, while also managing increasing costs.
“With many businesses struggling to balance the books, we’d urge the chancellor to consider providing across the board national insurance relief, which mirrors the tax relief on pension contributions in the next budget. With an ageing population and many individuals with pension shortfalls, this could help businesses bear the increasing costs, while also encouraging people to save more for their retirement. There needs to be some relief for businesses in the near future to help the government achieve its own growth targets.”