National Insurance April 2025 – Here's a summary of the most notable updates effective from april 2025: Consequently, from april 2025, employers will be required to pay ni at a rate of 15.0% for employees earning over £5,000. The increase in employers' national insurance will take effect on 1 st april 2025. Other factors are adding to their cost base too, including rising minimum wage bills, and meeting incoming employee rights requirements.

The latest budget introduces several key changes to national insurance (ni) and taxation policies that will impact employers and employees alike. From april 2025, the monthly cost for this employee will be £249.95. The rate from 6 april 2024 to 5 april 2025 on expenses and benefits is 13.8%. The secondary threshold of £5,000 a year will be in effect from 6 april 2025 until 5 april 2028.

National Insurance April 2025

National Insurance April 2025

Employers pay class 1a and 1b national insurance on expenses and benefits they give to their employees. Thereafter the secondary threshold will be increased in line with consumer prices index ( cpi ). The employers' national insurance cost for a monthly paid employee with an annual salary of £25,000 is currently £182.90 per month.

The difference is £67.05 per month, an annual increase of £804.60. The employment allowance will be increased to £10,500 per year to help smaller businesses. Chancellor rachel reeves will raise the rate of national insurance paid by employers in 2025 by 1.2 percentage points.

The rate will rise from 13.8% to 15.0%, and the threshold for contributions will be reduced from £9,100 to £5,000. From april 2025, employers will pay national insurance contributions (nic) on an employee’s earnings above £5,000 at the rate of 15%. The rate of employer’s national insurance contributions (nics) will rise by 1.2%, bringing it to 15%.

This means businesses will now pay a rate of 15%.

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