In the Autumn Budget, announced on 30 October 2024, Chancellor Rachel Reeves revealed plans to raise the National Insurance (NI) rate up to 15% for employers, whilst lowering the threshold at which they are required to pay.
The hike of 1.2 percentage points is accompanied by a change in the threshold at which employers pay NI, it will drop from £9,100 a year to £5,000. The rise in national insurance rates and a reduction in thresholds for payment could result in financial strain on business, especially small and mid-sized enterprises (SMEs) as the margins thin due to increased taxation. This strain may lead to some businesses cutting back on other services, putting group protection, employee benefits packages and group healthcare in the firing line. Peter Hamilton, head of market engagement, Zurich In...
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