INTRODUCTION
Fiscal tightening was expected in the Budget, driven by the
current economic challenges and the long-term need to reduce public
borrowing. The Chancellor has delivered on these expectations
through the introduction of a number of measures which will
significantly increase the tax burden for higher paid employees.
While the changes targeted specifically at employers were limited,
the National Insurance Contributions (NIC) increase announced in
the November Pre Budget report, the increases in the top rate of
tax to 50%, phase out of allowances and pension changes will all
adversely impact higher earners and their employers.
These changes will provide additional incentive for the highest
paid employees and their employers to investigate tax structuring
of remuneration, in particular those companies employing
expatriates.
