Following the budget in October, many of our clients got in in touch asking how the Employer’s National Insurance changes will affect them.

The increase in the Employer’s National Insurance rate was widely expected, and from April is going up from 13.8% to 15%.

Less widely expected was a reduction in the salary threshold from which you pay Employer’s National Insurance for each staff member from £9,100 to £5,000.

Finally, in a welcome news for small employers, the Employment Allowance, which offsets employers national insurance is more than doubling from £5,000 a year to £10,500. 

The exact impact of these three changes will vary from employer to employer.  For larger employers you will see an increase in costs, for very small employers there may be no impact or even a reduction in the Employer’s National Insurance costs.   

If you haven’t already looked into this, now is the time to do so, as the changes will come into force from April.

If you want to experiment for yourself I’ve put together a simplified spreadsheet that you can use to look at how the changes might affect you.

You can download the calculator free here, it’s designed for small employers who are eligible for Employment Allowance:

Disclaimer: This spreadsheet is provided ‘as is’ and you should always seek advice from your accountant or professional advisor.