2024-25 tax year update
As we approach the new tax year on April 6th, 2025, we want to keep you informed about key payroll changes that may impact your business.
Written by: Gustavo Fonseca
Key Payroll Changes Effective April 6th, 2025
Employer National Insurance Contributions (NICs)
- Employer Class 1 NICs will increase from 13.8% to 15% for earnings paid from April 6th.
- The Secondary Threshold for Employer NICs will decrease from £9,100 to £5,000 annually, meaning more employee earnings will be subject to NICs.
Employment Allowance Increase
- The Employment Allowance will rise from £5,000 to £10,500, allowing more businesses to reduce their NICs liabilities.
- Removal of the £100,000 eligibility cap making the allowance available to all eligible business and not only small companies.
National Minimum & Living Wage Increases
- 21 & over (NLW): £12.21 per hour
- 18–20-year-olds: £10.00 per hour
- 16–17-year-olds & apprentices: £7.55 per hour
Student Loan & Postgraduate Loan Thresholds
- Plan 1: The repayment threshold will rise to £26,065.
- Plan 2: The repayment threshold will increase to £28,470.
- Postgraduate Loans: The repayment threshold remains at £21,000.
Statutory Payments Updates
- Statutory Sick Pay (SSP): Increased to £118.75 per week.
- Statutory Maternity, Paternity, Adoption & Shared Parental Pay: Increased to £187.18 per week.
- Statutory Neonatal Care Pay (SNCP): A new statutory entitlement for eligible employees caring for a baby receiving neonatal care.
How Can You Offset Rising Costs?
Implement Salary Exchange for Pensions. Salary Exchange (Salary Sacrifice) is a smart way to reduce employer NI costs while increasing employees’ take-home pay.
By implementing Salary Exchange for pensions employers can save £1,000s on NI contributions whilst giving more to staff, offsetting the April increases. Use Husky’s calculator to see the savings.
Husky offers an automated process to set this up making it easy and removing the extra administration.
Get started
Register with Husky to get started or have a chat with our team to understand the benefits.
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