The budget introduced the following changes that may affect your business from 6th April 2025:
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:
