Lowering the Secondary Threshold for Employer NI – What You Need to Know
From April 2025, the secondary threshold for employer National Insurance (‘NI’) will be lowered. This means that employers will need to start paying employer NI contributions on their employees’ earnings sooner.
How Will This Affect Employers?
This change will affect employers in a number of ways. Firstly, employers will need to pay more in employer NI contributions. Secondly, employers will need to update their payroll systems to reflect the new threshold.
Employer NI and Employment Allowance Update
As an employer, you are responsible for deducting and paying National Insurance contributions (‘NICs’) for your employees. There are two types of NICs:
- Employer NICs — These are paid by you as the employer.
- Employee NICs — These are deducted from your employees’ wages.
Employment Allowance
The Employment Allowance is a relief that allows eligible employers to reduce their National Insurance contributions. The allowance increases from £5,000 to £10,500 per year from April 2025.
Increase in Employer NICs
From April 2025, the rate of Employer NICs increases from 13.8% to 15%. This means that you will need to pay more NICs for your employees.
How Taxfile Accountants Can Help
Taxfile Accountant can help you with all aspects of your payroll, including:
- Calculating and deducting NICs
- Claiming the Employment Allowance
- Preparing and filing your payroll reports
We can also provide you with advice on how to minimise your NICs liability.
Payroll Help from Taxfile
Contact Taxfile today to learn more about how we can help you with your payroll and any accounting matter.
