Many small UK firms have welcomed the new coalition governments decision to scrap a proposed 1% hike in employers national insurance (NI).
The so-called tax on jobs for staff earning more than £20,800 had been planned for 2011 a time when many analysts anticipate small businesses will be seeking to recruit in earnest in order to meet demand as the economy continues to recover.
Small businesses did not want this tax on jobs because clearly it would have been a major barrier to staff retention and job creation and would have hindered economic recovery, says Phil Orford, Chief Executive of The Forum of Private Business. For the majority of employers it would have proved to be an unpopular and unworkable tax rise. Although not perfect, the new coalition governments policy on NI is far better and provides a degree of certainty for business growth now and in the future.
The so-called tax on jobs for staff earning more than £20,800 had been planned for 2011 a time when many analysts anticipate small businesses will be seeking to recruit in earnest in order to meet demand as the economy continues to recover.
Small businesses did not want this tax on jobs because clearly it would have been a major barrier to staff retention and job creation and would have hindered economic recovery, says Phil Orford, Chief Executive of The Forum of Private Business. For the majority of employers it would have proved to be an unpopular and unworkable tax rise. Although not perfect, the new coalition governments policy on NI is far better and provides a degree of certainty for business growth now and in the future.
