National Insurance | 3 in 5 UK businesses say April tax hikes will hurt hiring this year

Three in five (60%) UK businesses say the upcoming rise in National Insurance Contributions will reduce their ability to make new hires this year, according to new research by Indeed Flex, the online marketplace for flexible and temporary work, has revealed.

A survey of 2,000 business managers and recruitment decision-makers reveals that nearly a third (29%) of firms have slowed down or paused recruitment since the Chancellor announced the tax changes on 30 October. 

Starting from April, employers’ National Insurance Contributions (NIC) will rise from 13.8% to 15%, and the salary threshold at which they begin paying NIC will decrease from £9,100 to £5,000 annually. At the same time, both the National Living Wage and the National Minimum Wage are set to increase.

Businesses are also grappling with the UK’s poor economic performance, with a 0.1% drop in GDP in January sparking fears of a potential recession.