Insights from HW Fisher: Everything you need to know about National Insurance and the cost of living crisis
Rising inflation in the UK is creating a situation where the cost of everyday essentials from groceries and household bills is rising higher than average household incomes. The Government continues to announce a number of measures designed to tackle this and support individuals. In this newsletter we explore what the impact of changes to National Insurance contributions (designed to help mitigate the implications of rising inflation) will mean in reality, for businesses and individuals. With the Bank of England predicting that inflation could rise as high as 12%, we also explore alternatives for employers (and employees) when it comes to asking for a pay rise.
Please do get in touch if you have specific questions, or if you would like to discuss your own circumstances.?
Contents:
Commentary from our Partners and team
Changes to National Insurance contributions - will you be better off?
July paychecks were the first where employees saw the effect of changes to National Insurance on their take home pay. Confused about your paycheck? Stevie Heafford, Tax Partner, explores what’s changed, who exactly the change is benefitting, and whether this is enough to solve the cost-of-living crisis?
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5 things you need to know about National Insurance
National Insurance thresholds increase in July, following an increase in the rate of National Insurance earlier in April - and the potential changes don’t stop here. While we await further clarity on proposed additional changes, Stevie Heafford outlines where the current policy stands and potential options you can explore to impact your tax bill in light of the cost-of-living crisis.
Cost of living crisis: 3 alternative options to a pay rise
Employees across the UK are feeling the pinch of the cost-of-living crisis and may be looking to their employer to help out. However, costs are also rising for employers to the point that they may not be able to afford to give pay rises at a sufficient level to make a significant difference to the take-home pay of their employees. Stevie Heafford outlines 3 alternatives to a pay rise that might be worth exploring.
The effects of rising inflation on financial statements
As inflation rates rise, financial statements can quickly become increasingly inaccurate. Financial Directors have a responsibility to consider the impact of inflation in their strategic reports to ensure stakeholders are aware of the future risk and impact on the business. Mandy Janes, Audit Partner, outlines the key concerns for financial statements and the next steps to consider for both accountants and clients.