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Issue:
4961
/
Categories:
Comment & Analysis
, employer NICs
, Employment tax
, National Insurance
, Business
Keeping costs down
The headline announcement in the autumn 2024 UK Budget is a significant change to the employer National Insurance Contributions (NIC) payable by businesses from 6 April 2025. The key alterations are:
- An increase in the employer NIC rate from 13.8% to 15%. This will apply to class 1 secondary class 1A and class 1B NIC payable by employers.
- A reduction in the class 1 secondary allowance from £9 100 to £5 000 ie the amount employees must earn before employer NIC becomes payable. For most employees this will result in an additional class 1 NIC liability of £615 a year (£4 100 x 15%) for the employer (before the 1.2 percentage points increase on the remainder of their income is taken into account). The £5 000 threshold will remain until 5 April 2028.
- To mitigate the impact of the rise for all eligible businesses the employer’s...
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