The budget revealed a collection of £25bn from the two changes that were announced in relation to employers National Insurance Contributions. The 13.8 per cent rate will be increased to 15 per cent and the starting threshold will be reduced from £9,100 to £5,000.
The National Association of Specialist Dental Accountants and Lawyers (NASDAL) said that when coupled with the increase in minimum wage and the cost of implementing the recently announced employment laws, this will have a significant effect on many dental practices.
It said that a particular concern for the dental sector is that in addition to the large increases in wage costs, employment allowance cannot be claimed by a public body or business carrying out more than half their work in the public sector (such as NHS services). Therefore, the increased employment allowance from £5,000 to £10,500 will be of no benefit to many.
Heidi Marshall, NASDAL chair, said, “I’m afraid that for a lot of NHS and mixed practices, the budget will be a huge disappointment. As well as a huge hike in wages costs, to not be able to claim what might have been perceived as the sweetener in employment allowance, will be an extra blow.”
The government has indicated that the budget is intended to raise most of the additional funds required during the course of its parliament and therefore it makes sense electorally for a government to announce the tax rises promptly.
According to NASDAL, dental practices will be hoping to see considerable investment in NHS dentistry from the extra funds raised.