Tax E-News 2025 UK: Key Updates 📢
.
EMPLOYMENT TAXES > Employer National Insurance Contributions (NICs)
.
Please remember that the significant changes to the NICs paid by employers will start to apply from 6 April 2025.
-An increase in the rate of employers’ NICs from 13.8% to 15% is combined with:
A decrease in the threshold at which an employer starts to pay NICs on each employee’s salary from £9,100 to £5,000*.
* A higher threshold of £50,270 applies for employees who are under 21 and apprentices under 25. Other variations can also apply.
-An increase in the amount of the ‘employment allowance’, which eligible employers can offset against their employers’ NICs liability, from £5,000 to £10,500.
-A relaxation in the rules that determine which employers are eligible for the employment allowance. Until 5 April 2025, the employment allowance has only been available to businesses with a prior tax year employers’ NICs liability of less than £100,000. This rule no longer applies for 2025/26, meaning employers may be able to access the £10,500 allowance, even if their 2024/25 employers’ NIC cost exceeded £100,000. Other restrictions on claiming the employment allowance still apply (including a limit of just one allowance between connected employers).
.
.
.
.
#bnw_chartered_accountants
#UK #2k25 #enews #eNewsletter #Tax #taxupdates #Employmenttaxes
