When 20 odd 'Business Leaders' signed and sent letters to Alistair Darling protesting the rise in Employer NI Contributions it set my mind ticking.

As a small business owner, for years I have known that the Employer did not actually pay the 'Employers NI Contribution'. It was the Employee who paid both the Employee and Employer NIC. That can't be true, I hear you say! They are labelled precisely so we dont make such a silly mistake! The Government even tells us who pays what! You're plain wrong, Andrew!

It works this way.

If you can pay someone £80 per day then that is it. You have to work from that figure as the gross from which everything else is paid. Tax, Employers and Employees NI, Holiday - the lot. Anything else will have to come out of the Employer's pocket until the new pay round comes by and it can be hidden again to be paid by the Employee. This is what the Business Leaders are upset about. Their Employees are on a set wage or salary and THIS time they will have to pick up the tab and they aint happy about it.

Mostly they are unhappy that Darling hadn't thought it through to give them a chance to slip it in unseen.

Now don't get me wrong. I dont think there should be any NI or Income Tax or any other deductions from the fruits of your labour. The American Constitution does not permit Tax on a persons Labor and for very good reason. You attract the unhealthy attention of Government who will lie, manipulate and even send you to war to safeguard their slice of your pie. Business Taxes are fine, indirect taxes are fine, but Hey Darling, leave that Tax alone!