Nursery World - In my view: Tax by stealth

Sharon Kerr, human resources and payroll officer for nursery chain Child Base, assesses the impact of next month's higher National Insurance (NI) contributions. Talk of the impending '1 per cent rise in National Insurance' at first glance makes the forthcoming increases sound modest. Far from it. The one per cent rise applies not to the actual contributions, but to gross pay and is roughly equivalent to a one per cent rise in income tax - an income tax hike by stealth.

Talk of the impending '1 per cent rise in National Insurance' at first glance makes the forthcoming increases sound modest. Far from it. The one per cent rise applies not to the actual contributions, but to gross pay and is roughly equivalent to a one per cent rise in income tax - an income tax hike by stealth.

The rises, announced by Chancellor Gordon Brown in last April's Budget, apply to both employer and employee, so while nursery staff will see a fall in their take-home pay from next month, nursery owners will see substantial rises in their employment costs.

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