Sarah Bradford considers how salary sacrifice schemes can be used to save National Insurance contributions.
Rachel Reeves’ first Budget on 30 October 2024 left many employers reeling with the news that employer’s National Insurance contributions (NICs) are to rise from 13.8% to 15% from 6 April 2025. This was compounded by a lowering of the secondary threshold from £9,100 (£175 per week; £758 per month) to £5,000 (£96 per week; £417 per month) from the same date.
These measures increase both the earnings liable to employer’s NICs and the rate at which those contributions are payable. While some help is available in the form of an increase in the employment allowance from its current level of £5,000 to £10,500 for 2025/26, many employers will face considerably higher NICs bills from April 2025.
The rise will not only apply to Class 1 NICs
