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The employee will pay tax on his/her earnings under £10,000, the politicians just call it National Insurance instead. I agree with you about NI'ers tax break though, that is skewed towards SME's, who are providing most of the employment growth in this country, so got to give credit for that one.

Or alternatively get yourself a good accountant and a friend at HMRC such as Dave Hartnett and you can pay nothing.

1: The 8% cut is for large companies only, unless yours is making profits of £1.5 million a year then it does not affect you...............or 98% of companies. 2: Increasing the personal allowance is fine, (but does not come in for another 13 months) but the allowance for NI contributions (which...