How much national insurance hike will cost your business
The Government’s £11bn national insurance tax grab to pay for social care will hurt economic recovery and create unemployment, warn small businesses and economists.
The Federation of Small Businesses has warned that more than 50,000 jobs in UK small businesses are at risk from the national insurance hike, which will cost British SMEs about £5.7bn.
This will not only impact small business (employer contributions will rise from 13.8% to 15.05%) but also the self-employed whose NIC will increase from 9% to 10.25%.
Our latest blog, Implications of the new 1.25% NI/Tax increase, outlines all the changes you need to be aware of.
For the full story, click here.
COVID-19: Nadhim Zahawi says October ‘firebreak’ restrictions could be brought in if booster jab programme is not done ‘well’
Providing a well-executed booster programme is vital in maintaining the Covid cases this winter. With the opening of the economy resembling some normality, the risk of an increase in cases as the colder weather arrives is likely.
A gap in the booster programme could however lead to re-introducing restrictions over the school half-term period at the end of next month. Although a full lockdown is unlikely and would be a last resort, some measures could be introduced like the school half term being extended if the NHS reaches a high capacity.
For the full story, click here.
Contactless card limit to rise to £100 in October
The spend limit for contactless cards is to rise from £45 to £100 from 15th October. This decision however could increase crime, with criminals stepping up the efforts to steal cards.
Chancellor Rishi Sunak said: “Increasing the contactless limit will make it easier than ever to pay safely and securely. As people get back to the High Street, millions of payments will be made simpler, providing a welcome boost for retailers and shoppers.”
For the full story, click here.
Staff shortages could last two years, says CBI
The shortage of workers is affecting supply chains across Britain, which could last for up to two years, according to the business body, the Confederation of British Industry.
There are currently shortages in supplies impacting businesses like McDonalds, Wetherspoons and Ikea.
The end of the job retention, or furlough, scheme later this month, will bring more people back into the labour market, the CBI said. However, it added that this was unlikely to resolve the problems firms were experiencing.
For the full story, click here.
Small businesses expect to increase pay by 3% next year
Small business owners should brace themselves to pay staff on average 3 per cent more in 2022, as employers face a shortage in staff. Many businesses are becoming affected by staff shortages due to both Brexit and Covid.
Small business owners may have to reach deeper into their pockets if inflation approaches the 4 per cent feared by the Bank of England later this year.
For the full story, click here.
