KPMG warns NIC burden is hindering companies
The burden of National Insurance Contributions could hinder recruitment and depress employment levels, according to employment tax specialists at KPMG.
The trend is set to hit smaller companies hardest where the burden of payroll administration is highest. A 46-page discussion document has been issued by the Inland Revenue on proposals to simplify employers’ administration of NICs.
‘While we’re delighted the Inland Revenue is at last looking seriously at this issue, its document is long overdue and several issues need careful consideration,’ said employment tax partner Inez Anderson.
The document also covers issues as diverse as Revenue inspection powers, the definition of pay, and calculation of NIC for UK employees working outside the UK.
‘The tax and NIC treatment of benefits provided by third parties is a very tricky area at the moment. This development gives employers a real opportunity to make their views heard. However we will need to continue lobbying hard for change in the most controversial areas,’ Anderson continued.
NEW CONSULTATION ON SIMPLIFYING NATIONAL INSURANCE CONTRIBUTIONS RULES FOR EMPLOYERS