NI rise will come as a surprise to many in April
The Mail reports on a rise in NI facing six million workers following the introduction of the new state pension from April 6 say Harris & Co chartered accountants Northampton. Government plans to scrap the state second pension will mean those who opted out, often automatically when they were put into a company pension scheme, will be required to pay higher contributions. Normally workers in full-time employment pay NI of 12% on any earnings between £5,824 and £42,385. However, anyone contracted out of the state second pension pays 10.4%. Employers will also have to pay 13.8% instead of the reduced rate of 10.4% for workers who are contracted out. Government estimates suggest of those remaining contracted out next April about 1m will be private sector workers while 5.4m will be in the public sector. Experts say the Government has done little to explain the changes which will boost Treasury coffers by £5bn in the 2016-2017 financial year, according to the OBR.
Source: Daily Mail (17/10/2015)