Rushtons Chartered Accountants and Business Advisers’ Post

Autumn Budget 2024: Changes to Employer National Insurance In the recent 2024 Autumn Budget, key adjustments to employer National Insurance (NI) have been introduced, impacting businesses across the UK. From April 6, 2025, the employer NI rate will increase from 13.8% to 15%, and the earnings threshold for contributions will decrease from £9,100 to £5,000. For an employee earning £30,000, employer NI contributions will rise from £2,884.20 to £3,750—a notable increase in payroll costs. This change underscores the importance of proactive financial planning, including payroll budgeting and workforce cost analysis, to navigate the impact as we head into 2025. Please note: This information is for guidance purposes only and does not constitute financial or tax advice. Levels, bases, and reliefs from taxation may be subject to future change. #AutumnBudget2024 #NationalInsurance #Payroll

In the recent 2024 Autumn Budget, Chancellor Rachel Reeves announced some significant changes to Employers’ National Insurance. These changes are due to take effect from 1 April 2025 and its prompting businesses to take a closer look at their payroll budgets and strategies. To help you understand this and to breakdown this imminent change we have highlighted in the below article the impact it may have on your business. Still concerned about how these changes could affect your business? Please get in touch with us. https://lnkd.in/eSiuPWFT #budgetupdates

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

❓What does the budget mean for you, if you employ people? Since the budget announcement there has been lots of negativity 👎🏻around the changes which have been introduced. Starting off on a positive, let’s talk about one bit of good news for Employers… the 📈INCREASE in Employment Allowance from £5k to £10.5k, to be introduced from April 2025. This allowance can be offset against the cost of Employers National Insurance that your business incurs, up to a maximum of £10.5k a year 💥 effectively a credit to you the business 🤗 ‼️Ensure your payroll software is automatically applying the credit to the amount that you’re paying over to HMRC each month. If we process your payroll for you - no need to worry, we’ll look after this for you 🤗👌🏼 It’s important to note that the Employment Allowance is not applicable to companies whose only employee is the director. #budgetautumn2024 #charteredaccontant #lisburnaccountant

🚨 Autumn Budget Update: Employers' National Insurance Changes 🚨 📊 Rate Adjustment: Employers' NI rate changed from 13.8% to 15%. 💰 Threshold Update: New primary threshold set at £5,000 (previously £9,100), impacting payroll costs. 💼 New Annual Allowance: The Employers' NI allowance has increased to £10,500! (previously £5,000) This means businesses can now offset more of their National Insurance contributions. If you want to know how this affects you and your business, get in touch.

The employment allowance, a government initiative, allows eligible employers to reduce their annual National Insurance contributions. Designed to support smaller businesses, this allowance provides financial flexibility for investment in operations and workforce. From April 2025, the employment allowance will increase to £10,500, as announced in the latest budget statement. This significant increase reflects the government’s commitment to easing the financial burden on businesses, enabling them to thrive in an increasingly competitive environment, in reality is just helps some small business avoid the worst impacts of the increase in employers NIC. Historically, the employment allowance has evolved to adapt to the changing economic landscape. Initially introduced to support small businesses by reducing employment costs, it has been periodically adjusted to reflect the needs of employers and the broader economy. The allowance has been vital in helping businesses manage payroll expenses, facilitating growth and stability over the years. Did you know if previous year's have not been claimed, incorrectly then we may be able to help you with a backdated claim? Contact us today for a free consultation or advice on all things employment allowance. info@lucaswhitepayrollservices.co.uk ~ 0161 302 8790 #PAYE #Payroll #upcomingchanges #tax #specialists #payrollprovider #businesses #employers #government #uk #growth #thebest #payrollservices #nic Lucas White Payroll Services Ltd

📢 Attention California Small Business Owners! 📢 If you handle payroll in California, heads-up! 📬 The EDD is now sending out letters with the 2025 unemployment insurance (UI) rate. You can also find it online in EDD's e-Services for Business. 🔍 Here's a quick reminder: Update this new rate in your payroll software or notify your payroll provider to keep everything accurate! It is number 1 reason for payroll report discrepancies. In QuickBooks Online (QBO), just head to Payroll Settings > California Tax > UI Rate, and add the new rate starting 01/01/2025. Need help? We provide comprehensive payroll services to keep your business on track and 401(k) plan setup to support your team's financial future. Let us handle the details so you can focus on growing your business! 🌟 #PayrollServices #401kSetup #CaliforniaBusiness #SmallBusinessSupport #PayrollTips #EDD #QuickBooks

📢 Proposed Payroll and National Insurance Changes for 2025: What You Need to Know 📢. National Insurance (NI) Thresholds Employee National Insurance: Tax Year 2024-2025 Earnings up to £12,570: No NIC Earnings from £12,570 to £50,270:13.8% Earnings from £12,570 to £50,270:2% 2025 -2026 The same calculation applies to employee NICs, as no changes are applied. Employer National Insurance Calculation Tax Year 2024-2025 Salary of 30000 £30,000−£9,100=20,900 20900*13.8%=£2,884.20 Employer Cost =£2,884.20 Tax Year 2025-2026 £30,000−£5,000=25000 25,000×0.15=£3,750 Current Employment Allowance £5,000 New Employment Allowance from April 2025: £10,500 #Payroll #NationalInsurance #UKBudget2024 #EmployeeBenefits #Finance #HR

Did you know that a quarter of adults have less than £100 in savings? Payroll Savings is a great tool to help people build a healthy savings habit by contributing directly from their paycheck. They can access the money any time they need it, but while they don't, they earn industry-leading interest. Check out this review from one of our users. #savings #payrollsavings #financialwellbeing