Changes to Employer NICs from April 2025 - What You Need to Know

From 6 April 2025, employers across the UK will see significant changes to National Insurance Contributions (NICs). If you're an employer, here's a quick breakdown of what’s coming and how it might affect your business.

Key Changes:

🔺 NIC Rate Increase

The rate of employer NICs will rise from 13.8% to 15%, increasing the cost of employing staff.

🔻 Lower Threshold for Employer NICs

The salary threshold at which employer NICs become payable will drop from £9,100 to £5,000 per employee.

📌 Note: A higher threshold of £50,270 remains for employees under 21 and apprentices under 25. Other exceptions may also apply.

💷 Employment Allowance Doubles

The Employment Allowance, which eligible employers can use to reduce their NICs bill, will increase from £5,000 to £10,500.

📣 Employment Allowance Eligibility Criteria Relaxed

Previously, only businesses with a prior-year NIC bill under £100,000 could claim the Employment Allowance.

From 2025/26, this restriction will no longer apply. So even if your 2024/25 NICs liability was over £100,000, you may still be eligible, subject to other conditions (such as one claim per group of connected employers).

What Should Employers Do Now?

✅ Review your payroll forecasts for 2025/26 to assess the financial impact.
✅ Check your eligibility for the new Employment Allowance rules.
✅ Speak to your advisor or accountant if you’re unsure how the changes apply to your business.

These changes will have real cost implications, especially for businesses with large workforces or lower-paid employees. Planning ahead is key.

If you'd like help reviewing how this will impact your business, feel free to get in touch at enquiries@teamjs.co.uk.