Connect with us

Hi, what are you looking for?

Right Decision NowRight Decision Now


UK firms well below EU average for tax roll burden of workers on £30k

The UK has one of the lowest payroll tax burdens for businesses, with the average cost of employing a worker on £30k being £3,000.

A new study by accounting company UHY shows Britain is below the European average, with the cost of keeping a worker in their job being 10 per cent of their salary, less than the EU in which it’s 20.7 per cent.

A key reason behind a higher burden in European Union countries, is due to costs like social security, insurance and pension contributions.

This comes after the mini-budget earlier in the year which lowered the national insurance rate to 12 per cent, and cancelled the social care levy in April. Jeremy Hunt confirmed these changes in his recent budget.

Lower costs for employing workers means firms are less likely to need to make layoffs, which is important amid tough economic times, high inflation, rising interest rates and recession.

Subarna Banerjee, Chairman of UHY International, said: “The recent mini-Budget has been one of the more controversial budgets of recent time, however, keeping national insurance low will make it cheaper to retain staff if the UK does enter into a recession. That will hopefully keep more people in jobs over the coming years.”

“The cut in NI also keeps the payroll tax burden for UK employers well below the EU and global average.”

Banerjee added that firms “could directly be incentivised not to make redundancies if governments reduced employment taxes.”

“Many economies have enjoyed near-record levels of employment in recent years, but that is expected to change. Keeping as many people as possible in work should be a key target for policy-makers in the coming months. A rise in unemployment will only exacerbate the issues many countries are facing due to consumer spending dropping sharply.”

Read more:
UK firms well below EU average for tax roll burden of workers on £30k

    You May Also Like


    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...


    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...


    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...


    Mark Zuckerberg has laid off more than 11,000 Meta’s employees, about 13 per cent of its global workforce, in what he described as “some...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 | All Rights Reserved