PAYROLL UPDATES

Changes from April 2025

Employer National Insurance rates increase from 13.8% to 15%

The Employment Allowance increases from £5,000 to £10,500 (please see below)

The threshold from which employer national insruance kicks in reduces from £758.33 to £416.67 per month.

National Minimum Wage increases from £11.44 to £12.21 for those aged from 21 year old

Employment Allowance

Check whether you are entitled to the annual £10,500 employer national insurance allowance

Class 1A NICs on termination payments

From 6 April 2020 employer NICs will be introduced on termination payments above £30,000, there will be no employee's NICs on these payments.

Off-payroll working rules IR35

If a worker is assessed to be inside of the IR35 rules then they are classed as a deemed employee, which means that although tax and NICs should be deducted, they are not entitled to any other employee benefits, such as statutory pay, AE pension or holidays.

budget 2025

Keep an eye out on legislation changes for the 2025/26

For new rates for the 2025/26 tax year (including new minimum wage rates please click below

2025/26 Rates >