National insurance (NI) contributions for employers – Budget 2024
The UK’s Autumn Budget 2024 includes significant changes for employer National Insurance (NI) contributions, beginning April 2025. These changes introduce a 1.2% increase in the employer NI rate, moving it from 13.8% to 15%.
Additionally, the threshold at which employers start paying NI per employee will decrease significantly, from £9,100 to £5,000 per year. This adjustment means employers will incur higher contributions on a larger portion of each employee’s salary, especially impacting sectors with high staffing costs, like hospitality, where these changes are expected to be challenging to absorb.
To help mitigate some of these costs, the Employment Allowance, a discount on NI contributions, will increase to £10,500 annually for eligible small businesses, offering some relief to those with a total NI bill below £100,000.
However, industry experts anticipate that these NI changes could suppress wage growth and limit hiring opportunities as businesses manage increased payroll expenses.
This shift aligns with the government’s goals to boost public service funding but will increase employment costs across the board, with likely ripple effects on wages and benefits such as employer pension contributions.
For more information and full detailed changes click
https://www.gov.uk/government/publications/autumn-budget-2024
At Numericalz we are here to help you to see how this affects you and what you can do to plan your finances better. Call us today or book an appointment on https://www.numericalz.com/book-an-appointment/
