TaxPersonal TaxNICs set to rocket for top earners

NICs set to rocket for top earners

High earning individuals could face massive national insurance contribution bill increases if the chancellor abolishes the liability ceiling on earnings, accountants have warned.

According to Baker Tilly tax expert George Bull, workers in all areas of the British economy should fear how the stealth tax potential of NICs will be exploited after the 7 June general election if Labour wins.

Bull said: ‘Changes to NIC rates and ceilings are central to Labour’s strategy of taxing the hard-working middle classes to pay for its social reforms.’ He added: ‘Abolishing the ceiling for employee NIC contributions could be next on Labour’s list. Currently, employees don’t pay class 1 NIC on annual earnings over Pounds 29,900.

‘If the chancellor abolished this ceiling, an individual earning Pounds 40,000 per annum would see his NIC bill rise by a massive Pounds 1,010 each year. For those earning Pounds 100,000, the increase would be an incredible Pounds 7,009.’

The party was unavailable for comment at the time of going to press.

Links

Brown pledges stability for business

Related Articles

Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

1m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

2m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

2m Alia Shoaib, Reporter
HMRC collects record £5bn in inheritance tax

HMRC HMRC collects record £5bn in inheritance tax

3m Emma Smith, Managing Editor
Making Tax Digital: What might HMRC’s penalties model look like?

Corporate Tax Making Tax Digital: What might HMRC’s penalties model look like?

3m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

3m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

3m Emma Smith, Managing Editor
Rangers tax case to have ‘dramatic’ consequences for football and business

Legal Rangers tax case to have ‘dramatic’ consequences for football and business

3m Emma Smith, Managing Editor