15/10/2024
Yet another “tax on jobs” coming?
The Labour government has been forced to defend its pledge to not raise rates of Income Tax, VAT and National Insurance numerous times over the past week, as speculation that Employer National Insurance could be about to increase intensified. Labelled a ‘jobs tax’ by employers and business groups, an increase to Employer NI would likely be denounced for making hiring more difficult at a time when the UK’s underperforming jobs market is already under the microscope.
Whilst Labour’s response to this being a breach of an electoral promise, is that pledges not to raise taxes on ‘working people’, but semantics aside, Labour ministers haven’t ruled out the possibility of it happening at this month’s Budget statement.
Alongside radical changes to employment law that perhaps encourage some employer’s to not employ, and may encourage to outsource work perhaps abroad, or being selective in the types of people that they employ, the there are two important ways that the picture could actually worsen for freelancers and contractors if the jobs tax does go up – and they both have something to do with our old foe, … is this aspect of our insight is of interest to you, jump over to our IR35 Advice page where we continue our adaptation of the excellent article by © Fred Hicks
