Josephine Rendall-Neal’s Post

The reduction in National Insurance Contributions (NICs) has recently taken effect. Whilst this is welcome and will boost the pockets of employees and the self-employed, it merely returns to individuals some of the extra tax they have paid due to the government's freezing of tax rate bands and annual allowances until 2027/28. Crucially, the employer rate of NI remains at 13.8%. This gives no breathing space to many employers, particularly those in sectors such as retail, hospitality, and manufacturing, who will see their people costs increase due to the uplift in the hourly rates of National Living Wage and National Minimum Wage. #Tax #EconomicGrowth #CorporateTax #FinancialPlanning 

Michael Ball considers the impact of upcoming changes to National Insurance contributions and minimum wage in Streets Chartered Accountants' latest column for Business Link.

The Conservative manifesto is out and whilst there is a fair amount of data and policy within it, not much expansion on the points that are being made, making it really hard to interpret who, when and why! See below for the changes to policy for the Conservatives 🌳 : 🌳 The current government have continuously cut National Insurance for employees over the last few years and their manifesto continues that trend, with a pledge to cut employee's national insurance to 6% by 2027 estimating a tax saving of £1,350 from the start of this year if you earn £35k per annum 🌳 Continuing with National Insurance, the Conservatives also want to completely abolish National Insurance contributions for Self employed workers by the end of this next parliament. This would mean 4 million self employed people would no longer pay National Insurance at all 🌳 Another interesting pledge and one that always becomes a huge point of discussion around April time with agency partners is National Living Wage. The government are looking to continue their algorithm of working out the living wage for the next two years, meaning it can expected to be around £13 per hour by 2026 🌳 Tax avoidance - rather appropriate in our sector and whilst the positive headlines are that the estimate gain from the 200 policies the Conservatives have brought in since 2010 sits at around £6.7billion per year, the suggestion is they will continue to build on this by adding another £6billion per year. The confusion however, is that nowhere in the manifesto does it state how, who they will target, what reforms they will put in place to achieve an extra £6billion etc.. so leaving us very much in the dark The closing words on this manifesto would be that nowhere in the manifesto is there any mention of employment rights, IR35 or job/ contract security which could be interpreted as... no change needed 😢 What are your thoughts on this? #conservatives #payroll #employment #election

📊 Social Security Wage Base Increases for 2025: What Employers Should Expect Attention employers: The Social Security wage base is set to rise to $176,100 in 2025, and that means adjustments to your payroll budget. Are you prepared? Here’s what you need to know: • The Social Security tax rate for employers is 6.2% on wages up to $176,100 • 1.45% Medicare tax on wages up to $200,000 • Additional 0.9% Medicare tax on wages over $200,000 For self-employed individuals, the rates will be adjusted accordingly. Make sure to account for these changes when planning your payroll and tax obligations for the upcoming year. Don’t risk penalties—reach out to a REVREX advisor for guidance on how to stay compliant and avoid surprises. #REVREX #SocialSecurity2025 #BusinessPayroll #TaxPlanning #EmployerGuidance

📢 Big changes are coming in 2025! The Social Security wage cap is increasing, and there are important updates to FICA taxes you need to know about. Want to stay ahead of the curve? Click below to get all the details and see how these updates might impact your payroll. #TaxUpdate #SocialSecurity #Payroll #FICA

💼 The First Labour Budget: What Employers Need to Know 💼 With the recent budget announcement, the government is set to raise taxes by £40 billion—with over half impacting employers through an increase in employer National Insurance starting next tax year. In our latest insights, we break down the key factors businesses should consider in their planning and highlight new incentives aimed at boosting workforce availability. #labourbudget #taxincrease #employerupdate Read more here: https://lnkd.in/eQN7saHb

Are you confused about payroll taxes? The employer pays Social Security, Medicare Federal Unemployment (FUTA) State Unemployment (SUTA or SUI). The employee pays Social Security, Medicare, Federal income withholding (FIT) State income withholding. For 2024, the combined Social Security and Medicare tax rate is 7.65% for wages up to $168,600 for both the employer and employee. Wages over $168,600 are subject to the 1.45% Medicare tax rate. The rates for state taxes vary by state. Employee Federal and State withholding rates vary based on the employee's elections on form W-4. #payroll #taxes #employeepay

As I see it, this Labour government is looking to tax employers for employing people, which seems ludicrous when only yesterday they argued that their focus was growth. Seems to me that removing cost burdens on employers is a far better way to stimulate economic growth. more people in work, especially at the lower income levels, will improve 'tax take' and inject cash [fuel] into the economy whilst simultaneously reducing numbers on state benefits. National Insurance is a misnomer to obfuscate total 'tax take' from employers and employees. A radical overall of the tax system to simplify it and minimise loop-holes would be infinitely better than tinkering. Just look at the messaging: promises of not increasing income tax levels or National Insurance for working people and then, potentially, increasing employers taxes. Labour seem to correlate "employer" to 'over-paid, wealthy tax avoider' (or possibly cash cow). For the vast majority of small- and medium-business owners this couldn't be further from the truth. BBC News - PM does not rule out NI rise for employers https://lnkd.in/ehZmXFqJ

Among many things, speculation around employers’ NI brings IR35 into sharp focus. If employers’ NI rises, so does the cost of non-compliance under the off-payroll rules. This is because HMRC will issue firms a tax bill made up of missing employment taxes in the event a contractor has been wrongly engaged outside IR35. Along with highlighting the importance of compliance, it shines the spotlight on businesses that insist all genuinely self-employed contractors work on the payroll. The cost of engaging workers on the payroll could well increase, which begs the question: why are some businesses still taking this risk-averse approach to the off-payroll rules? #IR35 #employersNI #Budget #flexibleworking #contracting 

Autumn Budget 24: Labour hikes employers' National Insurance by 1.2%. Labour has moved forwards with an employers' National Insurance (NI) hike of 1.2 percentage points from April 2025 in the Autumn Budget, with the threshold lowered and changes made to employment allowance. Anna Leach, Institute of Directors (IoD). Toby Tallon, Evelyn Partners. Jonathan Greer, Quilter. Damon Hopkins, Broadstone. Check out Jen Frost's latest article 👇 https://incm.pub/3AjKKcu #autumnbudget #budget #budgetnews #investmentnews #investmentmanagement #wealthmanagement #capitalgainstax #tax