
Cut the rate of Employer's National Insurance from 15% to 10% and adjust the salary bands
The starting point for paying would be raised from £5,000 to £12,000, to match Income Tax personal allowance.
Cap would be introduced at a £50,000 salary, replacing the current unlimited system.
This is particularly important as we enter the AI age, where there will be more pressure on businesses to replace people with AI bots, so even the playing field now to prevent huge job losses that will come otherwise.
Ideally, we would remove Employer's National Insurance the 'Jobs Tax' that costs around £5,000 per average employee and simplify the system. Sadly, since the numbers show this is not currently possible, FixUK proposes a plan to substantially reduce the burden instead.
Note the current starting point of £5,000 for Employers National Insurance had an unintended consequence of making part-time staff dis-proportionally more expensive and so less attractive to employers.
The proposal is to cut the rate from 15% to 10% and adjust the salary bands. The starting point for paying would be raised from £5,000 to £12,000, to match Income Tax personal allowance. Furthermore, to stop penalising extra pay for employers, a cap would be introduced at a £50,000 salary, replacing the current unlimited system. This is a substantial move in the right direction.