Budget 2024 Changes 

National Insurance changes for employers

The Chancellor, Rachel Reeves, has announced that National Insurance will go up for employers from April 2025.

Employers are required to make separate National Insurance contributions on the earnings of their employees. These aren’t taken out of the employee’s pay.

Here’s what’s changing for employers from April 2025:

• the employers’ National Insurance rate is going up from 13.8% to 15%
• employers will start paying National Insurance on more of an employee’s earnings, with the threshold reducing from £9,100 to £5,000
• the employment allowance will go up from £5,000 to £10,500 – this allows smaller organisations to claim back National Insurance up to the allowance limit

Even though the government hasn’t increased National Insurance rates for workers, it’s likely that they could be affected by this change.

Employers’ costs will increase because of the hike in National Insurance and minimum wages.

ER NICs Rate Increase

• The rate will be increased from 13.8% to 15% from 6 April 2025
• Employers Class 1 National Insurance Secondary Threshold (ST) will be reduced to £5,000 per year

• Employment Allowance will be increased to £10,500 and the £100,000 threshold removed

National Minimum Wage Increase

• NMW will increase from April 2025 as per the picture below:

 As always if you have any questions regarding tax advice, whether it’s income or capital gains tax, please send us an email info@oboyleaccounting.com or call us on 028 91469054