The Governments changes to National Insurance rates and thresholds will come into force from 6 April 2025 and will represent a major payroll expense for employers.

These changes will increase the rate of National Insurance Contributions (“NIC”) payable by employers from 13.8% to 15%. Additionally, the threshold at which employers start paying NIC on a worker's earnings will be reduced from £9,100 a year to £5,000.

However, there is some relief for smaller businesses, as to offset the increased National Insurance Contribution costs the level of employment allowance available to such businesses will be raised from £5,000 to £10,500 and the £100,000 eligibility threshold will be removed.

These changes, taken together with the increases to minimum wage levels that are being introduced on the same day, will have a significant impact on employers and FMGS is available to support employers who are looking at workforce planning to help them manage the potential impact of such costs.

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