Energy crisis: what are the tax lessons?
In one form or another, taxes and levies make up around 20 per cent of a typical household’s gas and electricity bill. The way these charges work is at odds with government policy on climate change. The charges act as a powerful disincentive for people to abandon gas and move to electricity for their heating. Worse, there is no VAT incentive to opt for electricity from renewable sources instead of fossil fuels. Joined-up thinking between government departments is urgently required.
National Insurance increase means many could overpay for businesses if increased staff costs not considered
Ross Stupart and Helen Relf
On 7 September 2021 Prime Minister Boris Johnson announced that employers and employees’ National Insurance (NI) contributions will each increase by 1.25 per cent from April 2022, with the increase becoming a separate health and social care levy from April 2023. Unless this additional cost for employees is factored into transactions, those purchasing a business will not reap the profits they expected.