Turn rising NIC costs into opportunities
Your profit margins are about to get slimmer. But with the right planning, you can stay ahead.
Your profit margins are about to get slimmer. But with the right planning, you can stay ahead.
If you’re in an industry like retail or hospitality, where people are at the heart of what you do, these changes could feel especially challenging.
Understanding these changes and planning will be critical to safeguarding your business’s financial health. As costs rise, we’re here to help you navigate the changes and protect your bottom line.
National Insurance Contributions are increasing from 13.8% to 15% — means you’ll be paying more in NICs overall but especially for higher-paid roles.
NIC threshold lowered from £9,100 to £5,000 per year — including part-time and lower-paid workers — the scope of contributions you’ll have to pay increases.
This tool gives an estimate of increased costs for businesses based on new policies from the Autumn Budget.
Rising costs can feel overwhelming, but you’re not alone. Let us help you navigate these changes with confidence. Here are some actionable insights and practical tools to help you navigate the challenges ahead.
Soldo’s smart spend management tools are designed to help businesses like yours take control of their finances,
reduce administrative burdens, and make every pound count.
Here’s how we can support you:
With Soldo, you’ll be equipped with the tools and insights to adapt to economic challenges and safeguard your business’s financial health. Let’s tackle this together.
Businesses can implement spend management solutions like Soldo for better expense tracking, automate financial processes to reduce manual work, renegotiate supplier contracts to secure better deals and invest in energy-efficient solutions to cut long-term expenses.
The employer NIC rate is rising from 13.8% to 15%, increasing business payroll costs. Additionally, the threshold for employer NICs will drop from £9,100 to £5,000, meaning a more considerable portion of employees’ earnings will be subject to NICs. This change will particularly impact businesses with large workforces, requiring budgeting and payroll strategy adjustments.
Enhancing your finance team’s efficiency can be achieved by leveraging automation to handle repetitive tasks like invoice processing, providing upskilling opportunities to improve financial analysis capabilities, and fostering collaboration to enhance workflow. These steps help maximise team performance while reducing time spent on manual administrative work.
Employer National Insurance is a tax businesses pay on their employees’ earnings above a certain threshold. These contributions help fund government services such as the NHS, state pensions, and other benefits. The amount payable depends on the employee’s salary and prevailing NIC rates.
Employer Class 1 NICs are paid by businesses on the earnings and benefits of employees. From April 2025, the rate is increasing to 15% for earnings above £5,000 per year. Employers must factor this into their financial planning, particularly those with many employees.
You can calculate your employer NICs using an online calculator like Soldo’s. Just enter your payroll details, including employee salaries and the number of employees, to estimate total NIC liabilities. This will help with financial planning and ensures accurate contributions.
Employers must calculate NICs for their employees, deduct the correct amount from salaries, pay employer and employee contributions to HMRC, and maintain accurate payroll records. Compliance with these duties is essential to avoid penalties.
National Insurance is calculated based on employee earnings. Employees pay NICs on earnings above the primary threshold, while employers contribute on earnings above the secondary threshold. The specific percentage varies depending on income levels and government regulations.