Employers favour cut in NI contributions

A new survey has revealed that Employers would most prefer to see a cut in the rate of employer National Insurance contributions (NIC) over any other tax relief.

Of those polled by Moore and Smalley Chartered Accountants and Business Advisors, 40% said they would most prefer a cut in employer NICs. A drop in the rate of VAT was favoured by 27%, while 20% opted for a drop in the rate of corporation tax, and 13% said they would prefer a reduction in the top rate of income tax.

Employers pay NICs on the salaries of their employees at the rate of 13.8 per cent, with many critics saying the tax is restricts new job creation among struggling businesses in Northern Ireland and throughout the UK. There have been suggestions of a drop in the rate of NICs, and also calls for an NICs holiday to encourage employers to create new jobs, but as yet there are no official plans by the government to alter the current arrangements.

If you are an employer in Northern Ireland requiring legal advice in respect of any aspect of employment law, including employment contracts, redundancy processes, unfair dismissal claims, or employee tax issues, contact one of the commercial solicitors at Wilson Nesbitt in Belfast or Bangor by calling 0800 840 9295. Or to view more on the services the firm can provide for your business click here.