National Insurance Changes in April 2025: What You Need to Know
From April 2025, there will be significant changes to National Insurance (NI) contributions that will impact businesses across the UK. The key change is an increase in employer NI rates, which will result in higher employment costs for companies. At PROMAN, we’re committed to helping businesses manage these changes with cost-effective workforce solutions and expert guidance.
Key Changes to National Insurance
Effective from April 2025, the following changes will take place:
-
Employer NI rates will rise from 13.8% to 15%. This increase will directly affect businesses, raising the cost of employing staff, particularly for those with lower-paid employees.
-
The NI threshold will decrease from £9,100 to £5,000 per year. This change will mean that more businesses will be subject to the increased employer contributions.
It’s important to note that while these changes affect employers, employees’ take-home pay will not be impacted, as the changes are specific to employer contributions only.
How the NI Changes Affect Employers
These adjustments can have a significant impact on businesses' payroll budgets. Here’s how:
-
Increased Employer Costs
The rise in employer NI rates means that businesses will face higher costs when employing staff, particularly those earning above the lower thresholds. Businesses will need to budget accordingly to manage these additional costs. -
Updated Payroll Systems
Employers will need to update their payroll systems to reflect the changes in employer contributions. Ensuring accurate calculations is crucial to maintain compliance and avoid potential fines. -
Flexible Workforce Solutions
At PROMAN, we understand that these changes may strain budgets. Our flexible workforce solutions—such as temporary and contract staffing—can help businesses manage these increased costs while maintaining operational efficiency.
At PROMAN, we offer expert guidance and tailored recruitment support to help businesses navigate the rising employment costs caused by these National Insurance changes. We work with you to create flexible staffing solutions that minimise disruption and keep your business running smoothly.
We’re committed to ensuring that businesses remain compliant with these changes and avoid any costly mistakes. Our team will assist you in adjusting payroll processes and discussing strategies to mitigate the impact of the increased employer NI rates.
Contact PROMAN
If you need guidance on how these changes will affect your business or require support in adapting to the new NI rates, PROMAN is here to help. We’ll work with you to provide cost-effective staffing solutions and ensure that your payroll processes are up to date.
Contact our team today at 0808 164 2923 for expert support!
