National Insurance Changes In 2024 Autumn Budget

It was announced in the Autumn Budget on the 30th October 2024 that from the 6th April 2025, employers secondary class 1 national insurance contributions (NICs), together with Class 1A and Class 1B rates, on an employee’s earnings above £5,000.00 per annum / £96 per week (down from £9,100.00 per annum / £175 per week) will increase from 13.8% to 15%. Nevertheless, in an attempt to offset the impact upon small businesses, the employment allowance will be increased from £5,000.00 to £10,500.00 per annum, with the £100,000 threshold now removed so that the allowance is no longer confined to just employers who have incurred an employer NICs liability of less than £100,000 in previous tax year.