Sounds like a long time away doesn't it, but this increase is something you need to consider now as part of your Payroll function, will your product support such a change? How easy is this to implement? Is it even possible with my current supplier?
The Chancellor also announced a plan to increase the starting point of NICs to the same point as income tax as well as the 0.5% increase in all rates of National Insurance Contributions from 2011. Mr Darling told the House of Commons that borrowing will reach £118bn next year - more than twice the amount forecast as recently as March 2008 - and that the budget will not be back in balance until 2015.
So increases in Tax and NICs over the medium term are all-but inevitable given the considerable increase in Government borrowing and having the cabability to manage these changes is fundamental. At esl we're working to ensure the changes will be implemented in advance of such a change and we will be putting contingency plans in place with all our current and future clients to make the changes fall well in advance of the 2011 deadline.
For further information or consultation on how the increases will affect yor payroll please contact
Wendy Esquivel on 01277 230656 - or
sales@employerservices.co.uk