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ISSUE 1
UK Payroll – Lookin towards another turbulent year
UK Payroll professionals have had to deliver short- notice changes over recent years. The trend may go on into the future. With a General Election to take place within the next 7 months, payroll turbulence may continue for some time.
Author: P Simon Parsons MSc FCIPPdip MBCS
Is National Insurance on the way out? In most nations, there is the operation of Social Security. The UK refer to this as National Insurance (NI or NICs). Originally seen as a means to fund state benefits such as unemployment and sickness and provide access to free NHS medical treatment and state pension. Often viewed that monies were being put aside as insurance for future use, the reality is that the government spent the money on receipt. The latest provision of tax cuts picked up by the government are measures to cut what they refer to as ‘a double
taxation on employment’ – so reduce National Insurance.
These past few years we have seen NIC rise for Health and Social Care reasons, then the proposals abolished and more recently a two-stage reduction in National Insurance. So employee contributions went from 12% to 13.25%, to 12%, to 10% and then from 6th April 2024 to 8% with further hints of reduction being muted prior to the next general election. The end of an era of benefit reporting Expenses and benefits have been traditionally reported on form P11D to
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