GrannyGravy13
ronib
My hardworking son tells me that his large company has a freeze on new jobs at the moment.
I have not looked in detail but do employers have to pay increased NIC on any apprentices they employ?
The level that employers have to pay NI will be £5,000 per year instead of the current £9,100.
Employees will not pay NI on anything up to £12,576 per year, but are treated as having paid NICs without actually having to make a payment.
I can see the rationale for employees on low incomes being credited with NICs. If they were unemployed, they would receive pension credits, so would receive a higher pension than those who work part-time, which doesn't seem right.
In any case, the NI system has never been fair because people who earn more (and pay more) receive exactly the same benefits as those who have paid less.
PS. Employers' contributions is a separate issue and I don't really have enough personal experience to comment, I must admit it seems a bit strange, when the objective is supposed to be growth, which I would have thought meant employing more staff not fewer.