The increase in employers NI from next April is going to have a significant impact on businesses of any size.

I have had many conversations since the budget with our @Pabasso members and many other business leaders I am in contact with.

These business leaders are looking at many options to protect their businesses which include: 

• cancelling or limiting pay rises/bonuses
• freezing recruitment and/or not replacing leavers
• possible redundancies  
• increasing prices
• reducing services
• reducing employee benefits

Most of these will have a negative impact on the economy and on employees.

However, there is a positive play that can be made to mitigate this challenge and that is the government-approved Salary Sacrifice scheme - it’s a win-win

A Salary Sacrifice scheme allow employees to give up some of their pay towards the cost of an approved tax-allowable benefit thus reducing the employees' tax and NI burden and reducing the employers NI contribution.

These were first introduced by the UK government in the 1970s as a tool to combat inflationary driven pay rises. They have since been watered down but there are still several areas where they can be used as promoted by a number of providers of such schemes and these include:

• Childcare
• Healthcare
• Cycle to work
• Electric vehicle costs
• Groceries
• Technology purchases
• Pensions 
• Gym membership

It’s well worth exploring these options at this challenging time.

We are always looking for leaders of established businesses, currently only in Yorkshire, the Humber and the North East, who are keen to benefit from the experience and expertise of other business leaders, we are also looking for experienced business leaders to join us and Chair more Pabasso - Peer Advisory Board Associates boards. Interested? Why not drop us a note or give us a call to find out more?

We currently have a vacancy in one of our Yorkshire-based Pabasso – Peer Advisory Board Associates boards so if you would like to know more about how we at Pabasso – Peer Advisory Board Associates help leaders of established businesses progress through shared experiences, expertise, and support, please do not hesitate to get in touch. 

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