"According to research from Moore UK, employer NI payments by SMEs alone could soar by almost £15 billion, potentially curbing recruitment, wages and even pension contributions."
"With 37 percent of smaller firms citing tax as a principal challenge, cost-cutting measures such as reducing employee benefits or freezing pay seem likely."
Small and medium-sized enterprises (SMEs) are facing increased National Insurance (NI) contributions following the Autumn Budget, where the Chancellor announced higher employer rates. This change is projected to contribute £25 billion annually to public finances but poses challenges for SMEs, potentially influencing recruitment and wages negatively. Research indicates that SMEs could see nearly £15 billion in additional NI payments, leading to cost-cutting measures like pay freezes. To mitigate these costs, some SMEs are considering salary sacrifice schemes, which may save around £4 billion collectively and encourage better employee savings, although awareness and implementation remain low.
Read at Business Matters
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