De-mystifying Accounts Jargon & Using Numbers To Create Growth For Business Owners - Creating A Better Accounting World
I recently came across Nicks's insightful post about the National Insurance increase and its implications (shared below:) It's got me thinking about how changes like this affect not just our personal finances but also the wider economy, businesses and future planning for public services 🤔 While it's clear that such measures aim to address pressing issues, whether funding the NHS, social care or other critical needs it’s equally important to assess the broader impact 🏥 How does this affect the cost of living, particularly during times of economic uncertainty? How can businesses, especially SMEs, adapt to these changes while maintaining growth and supporting employees? 💡 We’re at a point where collaboration between policymakers, businesses, and individuals is more crucial than ever. Transparency in how funds are allocated and exploring alternative solutions to fiscal challenges could help build trust and alleviate some of the concerns being raised. I'm curious, what are your thoughts? How do you think this increase will impact your sector or personal circumstances? 💭 Let’s continue the conversation. 👇
I CAN’T LET THIS GO: All the talk about the increase in ENIC has been about the 1.2% increase, not the shift in Threshold. Was this done on purpose? I haven't seen a single commentator, newsreader or "industry titan" who seems to understand the basic impact of it. So here it is: Every employer now pays an extra £615 in ENIC tax for every single member of staff earning more than £9,100 PLUS an extra 1.2% on every pound paid over £9,100. And this is outside of the increase in pay - it's nothing to do with inflation. It’s just new tax. The Threshold shift is so great that the impact is only matched by the 1.2% increase, when the salary is over £56,300. If you have staff working 15 hours at £12.21 the annual ENIC per employee used to be £58 per annum. With the new threshold it's £679 - an increase of 1070%! And we wonder why restaurants and bars are failing - and why supermarket prices will go up. Yet it's been swept under the carpet and nobody seems to have realised.
