Rachel Reeves plans another NIC tax raid at November Budget Skip to content Reeves eyes NIC raid Rachel Reeves is gearing up for another billion-pound raid on National Insurance Contributions (NICs) as the Chancellor finds ways to plug a huge fiscal black hole in November’s Budget.Reeves is understood to be drawing up plans to extend NICs taxes to include limited liability partnerships or LLPs, to whom the tax does not currently apply, in a move expected to raise as much as £2bn for the exchequer. The plans, which were first reported by The Times, mean major tax hikes for around 200,000 workers who use LLP corporate structures. Lawyers, GPs and fund managers, who often belong to LLPs, are likely to be hardest-hit by the move because the structure currently treats them as self-employed, disapplying employer NIC obligations.The potential changes follow a major NICs raid at last year’s Budget, which saw the rates of employer NICs increased on top of lowering the tax-free threshold, a move which added billions of costs for major employers in industries such as retail and hospitality. Income tax threshold freezeEconomists have said Reeves would likely stop short of raising the rates of income tax or employee NICs, moves which would violate Labour’s manifesto promises. News Updates Stay ahead with our three daily briefings delivering all the key…
Published: October 21, 2025 5:47 pm
Source: City AM — Read original