National Insurance Changes: What Employers Need to Know

Significant changes to Employer National Insurance Contributions (NICs) came into effect on 6 April 2025 and continue to apply during the current tax year. These updates affect payroll costs and should be taken into account by all UK employers.

The Employer National Insurance rate increased from 13.8% to 15%, while the Secondary Threshold—the point at which employers start paying NICs—was reduced from £9,100 to £5,000 per year. At the same time, the Employment Allowance increased to £10,500, helping many eligible businesses offset higher National Insurance costs.

Employers should review their payroll processes, staffing costs, and National Insurance calculations to ensure they remain fully compliant with HMRC requirements and avoid unnecessary errors or penalties.

Our team can help you assess the impact of these changes, update your payroll, and ensure your business remains compliant with the latest UK tax legislation.