Dr. Chee Wong’s Post

I'm sharing an excellent perspective on the upcoming National Insurance changes in the UK and what they mean for businesses. At Phase 2 Growth, we’re already working with companies across Europe to explore smarter, cost-effective options like outsourcing to establish a UK presence. If these changes might affect your plans, check out Phil’s post—it’s a must-read for business leaders thinking ahead to 2025

❓ Thinking about growing your UK team? Or is it time to rethink your strategy? From April 2025, UK employer National Insurance Contributions (NICs) will rise to 15%, and the threshold for contributions will drop to just £5,000. For small businesses, this means higher costs for every new hire. For European companies looking at the UK market, this raises an important question: 💡 Why hire directly in the UK when outsourcing could be a smarter, more cost-effective alternative? At Phase 2 Growth, we help businesses: Establish a UK presence without the risks of direct hiring. Enjoy predictable costs without additional tax burdens. Leverage scalable solutions that match your growth goals. If you’re curious about the exact changes to National Insurance, check out this breakdown: https://lnkd.in/enJedXiA 📅 Book a call here: https://lnkd.in/ea9TWgti – It’s a chance to see if we’re a fit for your plans. #UKExpansion #OutsourcingSolutions #NationalInsurance #BusinessGrowth #UKMarketEntry #SmallBusinessSupport #BusinessStrategy #CostSaving #Phase2Growth

#businessowners, do you know how much #nationalinsurance you need to pay as an employer? Our blog reveals all https://lnkd.in/e34b4mit

The UK budget changes to Employers National Insurance of a 1.2% increase is significant across the employment cost envelope but the threshold changes are more significant leading to a new unplanned 15% employment tax for business equating to £615 per employee. Given that 99.9% of the 5.7 million UK businesses are SME businesses this will disproportionately impact those businesses who are generally considered to be the entrepreneurial growth engine of the economy. It will equally apply to the 8,000 UK non SME businesses who might be argued have access and capability to stronger balance sheets but which are also in some cases operating in monopolistic sectors like energy, or even global corporates like banking and IT. That NI change is also regardless of what sector those businesses operate in, the public sector where this tax will be a double whammy cost alongside the 2% efficiency requirement but also charities and affordable housing businesses who have constrained revenue streams. Most of those charitable socially oriented businesses have had an extremely challenging last year let alone last 4 to 5 years continuing to operate on the thinnest of margins but there is no “means testing” of this NI change in terms of businesses that contribute beyond profits. So much for rent settlements and contributions to build new homes, also part of the budget, which will now be revisited by business as a result of this change. Given employees are the biggest cost it would make logical sense that AI growth may perhaps accelerate to meet the need for non NI burdened systems and processes being installed at the expense of employees, an unintended consequence which carries risk. Business is also going to have to bear down on pay settlements to accommodate that cost hike or alternatively prices rise as a result of the change. In our sector forcing up the benefit bill!! Whilst the change was undoubtedly necessary perhaps a bit more thought of the application and its unintended consequences and moral hazard might have been helpful. Markets never lie and they are now digesting the change.

Business From Home: How to Start a Home-based Business - Do you want to start a successful business from home? Because of outsourcing and downsizing by companies all over the world, even the most knowledgeable and skilled employees may find themselves without a job soon. Many people believed that if they found work in the state or federal government or a large corporation, they would be set for life. Complacency among American and African workers was aided by attractive pensions, health insurance benefits for you and your family, and union protection against dishonest or desperate management. There are now many well-informed and well-experienced people who are at the mercy of treasurers and buyout artists, as well as dubious political leaders trying to make their money by exploiting workers. Why was someone who worked for a company (and did an excellent job, in my opinion) fired the day before Christmas? This is just one of the many reasons you should seriously consider starting a home-based business to ensure your financial well-being...... Visit https://lnkd.in/eJnCnPTE to continue reading!

Business From Home: How to Start a Home-based Business - Do you want to start a successful business from home? Because of outsourcing and downsizing by companies all over the world, even the most knowledgeable and skilled employees may find themselves without a job soon. Many people believed that if they found work in the state or federal government or a large corporation, they would be set for life. Complacency among American and African workers was aided by attractive pensions, health insurance benefits for you and your family, and union protection against dishonest or desperate management. There are now many well-informed and well-experienced people who are at the mercy of treasurers and buyout artists, as well as dubious political leaders trying to make their money by exploiting workers. Why was someone who worked for a company (and did an excellent job, in my opinion) fired the day before Christmas? This is just one of the many reasons you should seriously consider starting a home-based business to ensure your financial well-being...... Visit https://lnkd.in/eJnCnPTE to continue reading!

JOBLESS CLAIMS RISE: #US #unemploymentInsurance claims increased to 225,000 for the week ending Sept. 28, up 6,000 from the previous week, according to the latest report from the U.S. #DepartmentofLabor. Despite this rise, the 4-week moving average for #joblessClaims dropped slightly to 224,250, reflecting stability in the broader #laborMarket. #InsuredUnemployment also saw a slight dip, with the total number of people receiving benefits down by 1,000 to 1.826 million. #economy #economicGrowth #jobGrowth #employment #unemployment https://loom.ly/Z5SwOFE

The recent UK Budget has brought a significant change for employers with a planned increase in employer National Insurance contributions. Starting in April 2025, employer NICs will rise by 1.2%, moving from 13.8% to 15%. Additionally, the secondary NIC threshold—the point at which employers start paying National Insurance per employee—will drop from £9,100 to £5,000 annually. This shift means employers will face higher NIC obligations on each employee’s earnings above this lower threshold, increasing the overall cost of employment for many businesses. At Jenkins Recruitment, we know the value of skilled finance professionals who can help businesses navigate these complex changes. Whether it’s maximising efficiencies, managing payroll impacts, or ensuring compliance with regulatory updates, experienced finance talent is essential for staying ahead. With over 30 years of experience specialising in Finance appointments from mid-senior level, our team at Jenkins Recruitment is here to help you find the experts who can make a real difference. If you're looking to strengthen your finance function in light of these recent changes, we have the expertise to connect you with skilled candidates in this field. Please get in touch if we can help strengthen your team. #FinanceRecruitment #JenkinsRecruitment #Budget2024 #FinanceExperts #EmployersNI #ExecutiveSearch