At the moment, employers pay a rate of 13.8% on employees’ earnings above a threshold of £9,100 a year.
In the Budget, Chancellor Rachel Reeves said this rate would increase to 15% in April 2025, and the threshold would be reduced to £5,000.
In order to help the smallest businesses, the employment allowance – which allows companies to reduce their National Insurance liability – will increase from £5,000 to £10,500.
But a number of organisations in Scotland have warned the changes could put their members under severe pressure.
Doctors representatives said thousands of pounds in extra staff costs could close some practices.
The Scottish Council for Voluntary Organisations estimated, external the National Insurance hike would cost £75m for the sector – which it says employs 133,000 people, 5% of the country’s workforce .
It said voluntary bodies “cannot afford additional financial pressures”, adding: “Many have already had to subsidise public services with their own funds, and increasingly we are hearing of organisations having to close their doors.”
Source:
www.bbc.com
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