Warning over burden of employment taxes for UK firms

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UK firms are paying more in employment taxes, in contrast to a trend of reductions across the world in recent years, said a new report.

Businesses in this country are now paying an average of £5,460 a year for an employee earning £47,600 - still below the global average of £8,460, said accountancy group UHY Hacker Young.

Spokesman Roy Maugham said: "The rise in employment-related taxes in the UK could impact competitiveness and limit much-needed growth.

"The Government's introduction of auto enrolment pension schemes may also be putting an additional burden on businesses.

"Add that to other measures like the national living wage and employers are seeing cost burdens being heaped on across their workplace. Inevitably, that will hit new job creation.

"At a time when the global economy is only gradually returning to health and the recovery is still very fragile, ensuring that revenue-raising policies don't disincentivise job creation and stifle income levels is more vital than ever."