Increased NI rates and your brokerage

We've recruited big in the last 12 months already but I think adding more cost to taking on a new employee will probably make us a bit less gung ho in future. The government seems to have scored a massive own goal with this one. A tax on working hard and creating jobs in what feels like a delicately balanced economy, all whilst leaving the bigger prize of unearned wealth well alone seems a bit foolish. Not totally unexpected from a government that seems to be devoid of a plan or direction and is only untouchable because the alternatives aren't much more palatable.

The increase in National Insurance will make employing people more expensive. Early calculations show that employing someone on the national living wage will cost employers an extra £241.87 per year. Whilst an increase in costs is not welcome, I do not envisage this being a major obstacle for for most financial services firms as they tend to be run efficiently with a fair profit margin and a cash buffer. It is likely to impact on the amount one can borrow from a mortgage lender, as take home pay decreases, lenders will say there is less disposable income available for monthly mortgage payments, which in turn could have a knock on effect on house prices, which in turn could mean the elderly have less assets available to pay for their own care.