Employer National Insurance contributions to rise from April 2025

The rate of employer National Insurance contributions will rise from 13.8% to 15% from 6 April 2025 the chancellor announced in her autumn Budget.

Further the point at which employers become liable to pay NICs on employees’ earnings – the secondary threshold – will be reduced to £5 000 from its current level of £9 100 a year. It will remain at this level until 6 April 2028 and then increase by consumer price index (CPI) thereafter.

However there is some respite for smaller employers as the government will increase the employment allowance from £5 000 to £10 500. In addition it will remove the £100 000 threshold for eligibility expanding this to all eligible employers with employer NICs bills from 6 April 2025.

Alexander Simpson partner at Evelyn Partners said: ‘The impact of a 1.2% increase in the employer NIC...