The changes to employers’ National Insurance announced in the 2024 Budget come into effect from 6 April 2025.

From this date, the rate of employers’ NI will increase from 13.8% to 15%, and the threshold that employers will start paying the tax at will decrease from £9,100 per year to £5,000 per year.

This means that the employers’ NI payable for an employee earning £27,000 per year will increase by £830 from £2,470 to £3,300.

However, the employment allowance allows employers with one or more employees to reduce their employers’ NI payable. The allowance was previously set at £5,000 per year, but this will increase to £10,500 per year from 6 April 2025.

This means that for a number of employers, they will actually save money as a result of this change. It will depend on the number of employees and their earnings.

The employment allowance isn’t available for single-director companies, so these business owners will need to look at the way they are taking funds out of their company to make sure that it is as tax-efficient as possible.

Talking Numbers Accountancy and Bookkeeping can help you to understand what this means for you. Tax doesn’t need to be taxing – we can help you understand your numbers and ensure that you are taking advantage of all available reliefs and allowances. Get in touch today for a free, no-obligation consultation.