Employers National Insurance

The threshold at which payments start is reduced from £9,100 to £5,000 per year.

The rate increases from 13.8% to 15%.

Employment allowance

Increases from £5,000 to £10,500

We can readily calculate your increased liability for 25/26. Please do not hesitate to contact us.

Any business that process PAYE payroll and meets any of the following criteria can claim employment allowance:

At least one employee earning above the NI contribution threshold (£6,396)

At least two company directors on payroll earning above the NI contribution threshold (£6,396).

Currently, total employers NI is less than £100,000 per year, but for 2025/26 tax year this restriction is being lifted so most companies will meet the criteria. For full details:

https://www.fsb.org.uk/resources-page/what-is-the-employment-allowance-and-am-i-eligible.html

Minimum Wage

Increases from £11.44 per hour to £12.21 if over 21 years old. (6.7%)

Other categories can be found at:

https://www.gov.uk/national-minimum-wage-rates

All information is summarised and is supplied for guidance only. Please see links for more...