PBR could see NI hike for rich
BDO predicts higher earners could face double whammy of higher income tax and national insurance contributions
The pre-Budget report could see higher earners face a hike in their national
insurance contributions on top of a rise in income tax, according to BDO.
Those paying income tax at 40% already face the prospect of a higher 50% band
being introduced in April next year, but they may also be hit with a higher NI
rate as the government tries to boost tax take.
Stephen Herring, senior tax partner at BDO said that chancellor Alistair
Darling is unlikely to introduce a jump in the basic rate of income tax or
another rise in the higher rate, but would be “less surprised if he were to
introduce further increases in national insurance, where he could increase the
upper earnings limit or contribution rates”, reported
Citywire.
Herring also predicted more restrictions on personal tax reliefs,
anti-forestalling measures to stop companies bringing forward dividend and bonus
payments before the 50% rate is introduced, and yet more anti-avoidance
legislation on bonus structures.