RSM Tenon survey shows UK workers feeling the pinch following budget
As pay day arrives for most UK workers, a survey carried out by RSM Tenon has shown that nearly half of all respondents have felt the impact of the recent one per cent increase in National Insurance Contributions (NIC) on their wage packet.
During the Budget in March, the Chancellor confirmed that the rate of National Insurance Contributions would increase by one percent from 6 April 2011. It was also announced that the Government is looking to integrate the PAYE and NIC systems, although this is likely to take many years as government is to consult on how best to implement such a fundamental transformation.
Over 500 people took part in the RSM Tenon poll which showed that 49% of respondents said they felt that the increase in NI contributions had made an impact on their wage packet, with 37% of those saying that they had experienced some negative impact, and the remaining 12% saying that the impact had been ‘large’.
Only 17% of those who responded said that they hadn’t really noticed any impact on their monthly wage.
Andrew Hubbard, National Chair of Tax at RSM Tenon, said:
Although the Budget saw employees benefit from the increase in personal allowances, they are now beginning to feel the effects of the squeeze on basic rate tax and the increase in National Insurance.
'UK workers would have first felt the impact of the increase in NI contributions in their May pay packet. Although it was a small increase, it is interesting that nearly half of the people that took part in our survey say it was noticeable.’
About RSM Tenon
RSM Tenon is a leading provider of accounting and business advice in the UK and internationally. RSM Tenon is the 7th largest accountancy and business advisory firm in the UK, employing over 3000 people across 50 offices. RSM Tenon is the UK member of RSM International*, the 6th largest global accounting network with over 700 offices across more than 70 countries.
RSM Tenon is a member of the RSM International network. The RSM International network is a network of independent accounting and consulting firms each of which practices in its own right. RSM International is the brand used by the network which is not itself a separate legal entity in any jurisdiction. www.rsmi.com