Attempts to exempt charities from National Insurance Contributions rise

As noted in an eNews edition from previous months, Employer NICs are due to increase as a result of the Autumn Budget. This will force charities into considering ways in which these additional costs can be budgeted for whether there be the ability to raise additional funds, claim more statutory funding or reduce costs elsewhere.

Amendments to the government’s national insurance contributions bill were proposed, which would exclude charities, such as GP surgeries hospice, care homes and dental surgeries, from the rise in the employer national insurance contributions. Following the debate in parliament in December, none of the amendments received the required majority of votes. The bill has yet to be debated in the House of Lords however, and so proposed changes may still be possible.

Charities will instead benefit from the employment allowance which has more than doubled from £5,000 to £10,500 but this will come as little consolation.