Prepare for Employers' National Insurance Rise

In the 2024 Autumn Budget, Chancellor Rachel Reeves announced the rate of employers' NICs will increase from 13.8% to 15%, from April 2025.

The level at which employers start paying NICs (the secondary threshold) will also reduce from £9,100 to £5,000 per year.

Additionally, the National Minimum Wage is set to rise to £12.21 per hour.

To help small businesses offset the increased NIC costs, the Employment Allowance, which helps eligible employers reduce their NIC liability, will increase from £5,000 to £10,500, and the £100,000 eligibility threshold will be removed.

Not all companies will be affected. A few will actually benefit from the increased Employment Allowance. But many others face significantly higher costs from the rising contribution rate and lower threshold.

References:

Sage Advice news article, covers details on the rise of employers' National Insurance, how it will impact your business, and what you could do to offset costs.

Sage Advice Website