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.