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National Insurance Changes from April 2025 Prepare now by reviewing your payroll, exploring cost-saving measures, and ensure you are positioned to benefit fully from the increased employment allowance. The changes to National Insurance will have a mixed impact on small businesses in the UK. Here’s what these changes mean and the implications: ➡️The employer's National Insurance rate will rise from 13.8% to 15%, representing a 1.2 percentage point increase. This will increase payroll costs for employers and may especially impact businesses with larger teams or those employing higher-paid staff. ➡️Reduction in the Secondary Threshold The threshold at which employers start paying NI will be lowered from £9,100 to £5,000. This means employers will pay NI on a greater portion of employees' earnings, further increasing costs. For small businesses with lower-paid workers, this could have a notable impact on their expenses. ➡️Increase in Employment Allowance The employment allowance will increase from £5,000 to £10,500. This will help small businesses by reducing the amount of NI they need to pay. Only businesses eligible for the allowance (those with an NI liability of £100,000 or less) will benefit, which primarily includes SMEs. Small businesses may need to consider measures to absorb these increased costs, such as increasing prices, improving efficiency, or limiting new hires. While the increase in employer NI rates and the reduced secondary threshold will add to the financial burden, the higher employment allowance provides some relief for smaller businesses. However, the overall impact will depend on the size and structure of the business. ☎️If you have concerns or need advice do contact us. ☎️ #NationalInsurance #SmallBusinessUK #PayrollManagement #CostSaving #SMEBusiness #PayrollCosts

National Insurance Changes from April 2025 Prepare now by reviewing your payroll, exploring cost-saving measures, and ensure you are positioned to benefit fully from the increased employment allowance. The changes to National Insurance will have a mixed impact on small businesses in the UK. Here’s what these changes mean and the implications: ➡️The employer's National Insurance rate will rise from 13.8% to 15%, representing a 1.2 percentage point increase. This will increase payroll costs for employers and may especially impact businesses with larger teams or those employing higher-paid staff. ➡️Reduction in the Secondary Threshold The threshold at which employers start paying NI will be lowered from £9,100 to £5,000. This means employers will pay NI on a greater portion of employees' earnings, further increasing costs. For small businesses with lower-paid workers, this could have a notable impact on their expenses. ➡️Increase in Employment Allowance The employment allowance will increase from £5,000 to £10,500. This will help small businesses by reducing the amount of NI they need to pay. Only businesses eligible for the allowance (those with an NI liability of £100,000 or less) will benefit, which primarily includes SMEs. Small businesses may need to consider measures to absorb these increased costs, such as increasing prices, improving efficiency, or limiting new hires. While the increase in employer NI rates and the reduced secondary threshold will add to the financial burden, the higher employment allowance provides some relief for smaller businesses. However, the overall impact will depend on the size and structure of the business. ☎️If you have concerns or need advice do contact us. ☎️ #NationalInsurance #SmallBusinessUK #PayrollManagement #CostSaving #SMEBusiness #PayrollCosts

🚨 Attention HR and Payroll Teams! 🚨 With the Treasury considering an increase in national insurance contributions for employers in the upcoming Budget, it’s time to prepare for potential changes. Here’s what you need to know: Increased Costs: Be ready for higher employment costs that could affect hiring and salary increases. Budget Adjustments: Update your financial forecasts to accommodate the new rates. Clear Communication: Keep employees informed about how changes may impact their take-home pay. Hiring Impact: Adjust your workforce planning and talent acquisition strategies. Compliance Check: Ensure your payroll systems are ready for the changes! Stay proactive and prepare for the road ahead! 💼💰 #HR #Payroll #NationalInsurance #Budget2024 #BusinessPlanning

The ripple effect of a speculated employers’ NI hike? Focusing on IR35, our CEO, Seb Maley, spoke with Personnel Today about the potential knock-on impact: “Should the cost of employing staff rise, businesses that have needlessly insisted that all contractors operate on the payroll regardless of their IR35 status desperately need to rethink their stance." #IR35 #Budget #contracting #offpayroll #hiring

Here's a great piece of information on the savings on NIC with salary sacrifice. Salary sacrifice schemes are a hot topic, given the rise in employer NIC.  Examples of strategies that also saves employees money include cycle to work schemes and green car schemes. These schemes reduce an employee's tax and NIC contributions while making scheme repayments. Since the salary sacrifice scheme repayment happens before NIC and tax calculations (gross level), employers pay less NIC throughout the scheme repayments. The more employees taking on a salary sacrifice scheme and saving on the ER NIC's the more money employers save. Looking ahead to 2025 and beyond Change is inevitable, but cuts don’t have to be. Employers have solutions at their disposal that, when effectively embedded into their business, can help them offer employees more for less. Contact me at Verlingue UK, to find out more information and how we can help you make the savings in the business you need in 2025!

Understanding your payroll is key when it comes to Workers Comp Insurance. Make sure you have it broken down correctly per category of employee to ensure accuracy in your premium calculations. It's a crucial aspect to stay on top of for a successful audit at the end of the term. Let's say you're at $30,000, so your payroll may only be $60,000 at the end of the year. Well then we need to take a look and we need to adjust that and reduce the premium that you're paying. That way at the end of the year you're not doing your audit and finding that you are going to get this chunk of money back. You might like doing that, just like some people like getting their tax returns and having a little bit of money, but you're in business to try to do the best with your income. Therefore you don't want to be waiting on something to come back to you that's not paying you interest. Let's have a conversation to make sure that you're staying on track with your payroll to make sure that work comp is taken care of properly. #PayrollManagement #WorkComp #HRStrategy

Yesterdays budget confirmed changes to Employer National insurance Contributions and increases to the National minimum wage rates. The following changes to the National Minimum Wage which will apply from the 1st April 2025: 1.National Living Wage (21 and over): up by 77p to £12.21 per hour 2.18-20 Year Old Rate: up by £1.40 to £10.00 per hour 3.16-17 Year Old and Apprentice Rate: up by £1.15 to £7.55 per hour From the 6th April 2025, Employer National Insurance Contributions will be payable for employees with a salary over £5000. However you may not necessarily be paying more Employer National Insurance Contributions; 1. From April 6th 2025 you will now pay Employer NICs on employee’s salary which is over £5000... and... 2. Employer NICs are going up from 13.8% to 15% 3. However, the small business Employment Allowance is increasing from £5000 to £10,500, which means some small employers may see their Employer NIC bill go down from 6th April 2025. With the increase in the employers national insurance rate from April 2025, the employer may want to consider bringing forward bonus payments into this tax year as opposed to the 2025/26 tax year. Are you looking to reward employees who have been with you for more than 20 years? You can provide long service gifts which can be free of tax for the employee. The gifts can be worth up to £50 for each year of service up to a maximum of 20 years and it should be the first gift within the last 10 years, and not cash. Businesses need to be careful that they do not fall foul of the National Minimum Wage complex legislation as penalties can be exceedingly high. One should carry out a NMW review to ensure that the business is compliant. Please do not hesitate to contact us if you require assistance. Consider the option to payroll benefits in kind (except for beneficial loans and accommodation) thereby potentially avoiding the legal requirement to complete and submit forms P11D. You must apply to do so prior to 6th April 2025 if you want to adopt this approach as regards the 2025/26 tax year. Please note that payrolling benefits will become compulsory from 6th April 2026 onwards. We are professional, flexible and local. To take advantage of a FREE initial meeting contact us now👇🏼 ☎️ 01869 277973 📧 email@stackandjones.co.uk 🌎 www.stackandjones.co.uk

📢 PRSI Changes from 1 October 2024: New adjustments to PRSI rates for employees, employers, and the self-employed. Employers, update payroll systems and ensure compliance. Employees, check how these changes will impact your net income and benefits. #Ireland #PRSI #TaxUpdate See full article here - https://lnkd.in/eG4xReHc

National Living Wage Increase: Impact on Pay and Benefits Sheila Attwood our Senior Content Manager at Brightmine, explains how the wage increase and NI rise may lead leaders to reassess pay budgets. “Affordability and business performance will be key factors in next year’s pay awards.” Sheila stresses the need for a strong Employee Value Proposition (EVP) to retain talent: "Employers may need more than salary alone to keep employees engaged." #HR #PayTrends #EVP #EmployeeRetention

Further 2p reduction to the main rate of employees’ National Insurance from 6 April 2024. #SpringBudget24 #Budget #NationalInsurance #CIPP #Payroll #ChoosePayroll https://ow.ly/qKPL50QMBuo