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The UK government recently announced changes to Employer National Insurance Contributions (NICs), and if you run a business with staff, these changes affect your payroll costs.

At Balancewise Services Ltd., we’re here to break it down clearly: what’s changed, who’s affected, and how you can adapt.

 

 

1. Freezing of the Secondary Threshold

The £9,100 per annum threshold for employer NICs is frozen until 2028.

This means more of your employees’ earnings will remain subject to employer NICs as wages increase due to inflation or minimum wage rises.

Impact: Your business may end up paying more NIC overall over time—even without a rate increase.

2. Extension of Employer NIC Relief for Veterans and New Freeports

If you hire:

Armed Forces veterans, or

Employees working within Freeport tax zones,
you may be entitled to relief on Employer NICs for up to 12 months of employment.

Tip: Ask us how to claim this relief through your payroll software.

3. National Insurance Holiday for Qualifying New Businesses (Continuing)

Some new businesses in designated Investment Zones may qualify for zero-rate Employer NICs for new hires—up to a salary cap.

Note: Reliefs are subject to sector, location, and employee eligibility. We can advise on whether you qualify.

What Does This Mean for Your Payroll Budget?

If you’re not taking advantage of available NIC reliefs or if your business has a growing team, these changes could increase your payroll liabilities.

It’s more important than ever to:

Review your salary structures

Forecast NIC costs accurately

Ensure payroll is compliant and tax-efficient

At Balancewise Services Ltd., we’ll help you assess the real impact on your business and plan accordingly.

How We Can Help

We provide end-to-end payroll and compliance services to help you:

Calculate and report Employer NICs accurately

Identify and claim NIC reliefs where eligible

Ensure RTI (Real Time Information) submissions are HMRC-compliant

Avoid overpaying through incorrect categorisation

Peace of mind, with payroll you can trust.