Crownhouse IFA's Limited’s Post

Important Update on Employers' National Insurance Contributions (NICs) for Businesses! The UK government has recently announced changes to Employers' National Insurance Contributions (NICs) that could impact your business's bottom line: Changes to NI Thresholds: Adjustments to the National Insurance thresholds could affect the amount your business pays in contributions. It's crucial to check the new rates and ensure your payroll system is up to date. Increased Employment Allowance: The Employment Allowance has been increased, potentially reducing the amount of Employer NICs your business owes by up to £5,000 annually. This is a valuable opportunity for businesses to save on costs and invest more in growth. What You Should Do: - Review your payroll and accounting systems to ensure they reflect the latest changes. - Consult with a financial advisor to understand how these updates may affect your business and to ensure compliance. Staying informed about these updates is key to managing your business effectively and making the most of available benefits. Please get in touch and we would be happy to discuss your needs in more detail. #Crownhouse #EmployersNI #NationalInsurance #GovernmentUpdates #BusinessFinance #PayrollManagement #UKBusiness #EmploymentAllowance #CostSavings

BUSINESSES COUNT THE COST OF INCREASES TO EMPLOYERS NATIONAL INSURANCE As has been widely expected in the last few weeks, the Chancellor, Rachel Reeves, made some significant changes to the Employers National Insurance (NI) rate and threshold in the Autumn Budget. From 1 April 2025, the rate for Employers National Insurance (NI) will increase from 13.8% to 15%. At the same time, the level at which employers start paying national insurance on each employee’s salary will be reduced from £9,100 per year to £5,000. The combination of these two changes means a potentially significant increase in payroll costs for businesses. Find out more: https://lnkd.in/dCdx5bwq For all this week's business news from DPC: https://lnkd.in/dDufsqd5

Curious about 'National Insurance Contributions' (NICs) in payroll? They're mandatory payments from employees and employers to qualify individuals for certain state benefits. Different classes of NICs apply depending on earnings and employment status. Need expertise to plan your business finances? Reach us at our website and book a chat 🗂️. #PayrollFacts 👉🏻 growyournumbers.info

Starting next April, National Insurance contributions for employers will increase from 13.8% to 15%. Along with this, the threshold for paying National Insurance will also be lowered from £9,100 to £5,000, meaning more businesses will face higher costs. While the increase primarily targets larger businesses, the reduced threshold could have an impact on smaller employers as well. To ease the burden, the Employment Allowance will rise from £5,000 to £10,500, helping those eligible. However, this change may still lead to fewer hires and even job cuts in some sectors. Learn more in our partner's, Total Landlord Insurance latest blog: https://bit.ly/3AYeBrb #NationalInsurance #EmployerCosts #UKBudget #BusinessImpact #Employment

Businesses count the cost of increases to Employers National Insurance As has been widely expected in the last few weeks, the Chancellor, Rachel Reeves, made some significant changes to the Employers National Insurance (NI) rate and threshold in the Autumn Budget. From 1 April 2025, the rate for Employers National Insurance (NI) will increase from 13.8% to 15%. At the same time, the level at which employers start paying national insurance on each employee’s salary will be reduced from £9,100 per year to £5,000. The combination of these two changes means a potentially significant increase in payroll costs for businesses. To counteract this, the employment allowance will be increased from its current £5,000 to £10,500. The Chancellor claimed that this would mean that “865,000 employers won’t pay any National Insurance at all next year and over 1 million will pay the same or less than they did previously.” An employer who employs 4 full time (35 hours per week) employees at the National Living Wage rate will not have to pay NI on their wages. However, there is some encouraging news for larger businesses. Previously the Employment Allowance could only be claimed by an employer if their Employers NI liability was less than £100,000 in the tax year. This restriction will be removed and mean that all employers that otherwise qualify will be able to reduce their national insurance liability by £10,500. Businesses planning their headcount and budgeting payroll costs for next year will want to factor in the increased national insurance costs. If you need any help with doing this, please do not hesitate to give us a call. #budget2024 #accountant #southampton #nationalinsurance

💼 A rise to employers' National Insurance 💼 From April 2025, employers will pay 15% in National Insurance on their employees, a rise of 1.2 percentage points. There is also a reduction in the secondary threshold for when employers must pay this - decreasing from £9,100 to £5,000. To support smaller businesses amidst rising costs, the employment allowance will increase, allowing employers to claim back more from their National Insurance bill—rising from £5,000 to £10,500. This adjustment means that approximately 865,000 employers won't pay any National Insurance on their employees next year, and around 1 million will pay the same or even less than before. #Budget2024 #EmployersNationalInsurance #bookkeeping #accountancy #finance #businesssupport

Lets talk Budget 2024 and what it means for National Insurance! Employers NIC rate increases by 1.2% to 15% (from 13.8%). The earnings threshold at which Employers start to pay NIC will reduce from £9,100 to £5,000. To, somewhat, counteract the Employers NIC rate increase, the Employment Allowance (a credit against Employers NIC) for ‘small’ employers will increase from £5,000 per annum to £10,500.

The devil is always in the details… There are a number of moving parts to benchmarking your PEO solution or doing a cost comparison or evaluation with a PEO the first time. Group health insurance is typically the biggest piece of the puzzle to solve for. Workers compensation insurance is another piece. State Unemployment Insurance is another piece. And of course the administrative fees, which usually includes both the payroll processing and human resource components of the solution. “All else being equal”, it’s better to have a flat fee administrative fee, often referred to as a Per Employee Per Month (PEPM) fee, rather than a percentage of payroll. The reason this matters is because of wage inflation. Wages tend to trend up, especially over long time horizons. And that’s because of raises, bonuses, and commissions. The percentage of payroll billing method, is a built-in, invisible mechanism, for a PEO to benefit from your wage inflation. What may seem benign at first, can become malignant over time. 📌 Wondering what a PEO is? I've provided a link to a video in the comments below 👇. #PEO #CFO #grouphealthinsurance

🚨 How The Potential Employer National Insurance Rise Could Effect Everyone: What It Means for You Whether You Are An Employer, Employee or Customer 🚨 The Labour government may introduce an increase in Employer National Insurance contributions in the next budget, and it could have a significant impact on small businesses. Higher payroll costs could affect hiring, wages, and even the prices customers pay. Want to know how these changes could affect you? Check out our latest blog to stay informed and find out how to prepare! https://lnkd.in/eaB8W8N3 #SmallBusiness #EmployerNICs #Payroll #TaxChanges #BusinessTips

A major hike in National Insurance (NI) contributions for employers is looming and now is the time for all businesses to consider ways of softening the blow. The level at which employers start paying NI has also been slashed from £9,100 to £5,000. This will cost employers an additional £900 for each employee on average earnings, according to the Institute for Fiscal Studies and has prompted fears of pay freezes and even job losses. In our latest article, Director Ian Parker examines the upcoming increase in the employers’ NI rate—from 13.8% to 15%—effective April 6, 2025. He also highlights how salary sacrifice schemes can help businesses manage these changes effectively. Read the full article here 👇 https://lnkd.in/eXGgV3DY #nationalinsurance #NI #employers #employee