Employment Allowance 2025:​Your Guide to the New Changes

Big changes are coming to Employment Allowance in April 2025, offering businesses increased relief on National Insurance costs. The allowance will more than double to £10,500, and the previous cap preventing larger employers from claiming will be removed. These changes come alongside rising NIC rates, making it crucial for businesses to plan ahead.

Find out if you’re eligible, how much you could save, and the simple steps to claim. Don’t miss out—prepare now to maximise your payroll savings!This blog explores the new rates, their implications for businesses, and practical strategies to prepare effectively for the upcoming changes.
This guide explains how salary sacrifice works, its benefits, and how your business can leverage it to stay compliant and cost-efficient.

Small Employers’ Relief: Important Changes for 2025-26

Great news for small businesses! From April 2025, the Small Employers’ Relief compensation rate will increase to 8.5%—nearly triple the current rate. This means eligible employers can reclaim 100% of statutory parental payments plus an extra 8.5%, improving cash flow and reducing financial strain.

If your business paid less than £45,000 in Class 1 NICs, you could benefit. Learn how to check your eligibility, claim the relief, and maximise your savings.