📣 Attention Business Owners & HR Professionals: Major Updates to Employers Allowance for the 2025/2026 Tax Year
As we approach the new tax year starting April 6, 2025, now is the time to get ahead of some important changes to the Employers Allowance. This valuable relief helps reduce your National Insurance contributions (NICs).  Understanding the changes now could make a huge difference to your business’s finances.
What’s Changing?
- The Employers Allowance Boost: The allowance, which allows eligible businesses to lower their annual NIC liability, is increasing to £10,500 for 2025/2026 (up from £5,000)—great news for small and medium-sized businesses (SMEs)!
- The Other Side of the Coin:
- Employer NIC rates will rise from 13.8% to 15%.
- The threshold at which you start paying NICs per employee will drop from £9,100 to £5,000.
These changes could impact your bottom line, so it’s essential to plan ahead.
Why These Changes?
The government is raising the allowance to ease the burden on SMEs in light of increasing employment costs, while adjusting NIC rates and thresholds to meet broader economic needs. It’s a balancing act—but one that we can help you navigate.
How Langricks Can Help You Prepare:
- Payroll Planning
We can work with you to analyse how the new NIC rates and lower thresholds will impact your business and help you optimize your payroll. A simple review can prevent surprises down the line. - Plan Smart Hiring Decisions
If you’re considering expanding your team, we can assist you in factoring the new NICs and £10,500 allowance into your hiring plans to ensure they’re both cost-effective and aligned with your growth goals. - Eligibility Check
Not every business qualifies for the allowance, but we can quickly confirm if you meet the updated criteria. Don’t miss out on the £10,500 relief! - Tailored Advice for Your Business
Our expert accountants and tax advisors can help you strategize to minimize costs and make the most of the new employers’ allowance for your unique situation. Let’s make sure you’re getting the relief you deserve. - Stay Informed with Langricks
We’ll keep you updated on any further changes or announcements from the government. Our team is always on top of the latest developments, ensuring your business stays ahead of the curve.
Let Langricks Help You Navigate These Changes Smoothly
The new employers allowance rules bring both opportunities and challenges. With our guidance, you can get ready now to make the most of these changes, keeping your business financially strong and prepared for the road ahead.
💼 Want more personalized advice? Reach out today! We’d love to assist you in tackling these changes and positioning your business for success in 2025 and beyond.
