Book your FREE Salary Sacrifice Seminar and offset April’s NI Increases.

In the October 2024 Budget, significant changes to employer National Insurance Contributions (NICs) were announced.

From 6th April 2025, you can expect that:

• The secondary Class 1 NIC rate for employers will rise from 13.8% to 15%.
• The earnings threshold at which employers begin paying NICs will decrease from £9,100 to £5,000 per annum.
• To support smaller businesses, the Employment Allowance will increase from £5,000 to £10,500 annually.

Did you know that Salary Sacrifice can help mitigate these rising costs of NI?

A Salary Sacrifice arrangement is an agreement between an employer and an employee to reduce the employee’s gross pay in return for a non-cash benefit. Common salary sacrifice arrangements include:

• Pension contributions (the employee exchanges part of their salary for an employer pension contribution)
• Cycle to Work schemes (exchanging salary for a bike and cycling equipment)
• Workplace Nursery vouchers (where still available)
• Electric car schemes (reducing salary in return for a low-emission vehicle)

Because the employee’s gross salary is reduced, the amount of National Insurance (and usually Income Tax) that both the employer and the employee pay is also reduced.

Colleagues at The Harding Hub are now available to deliver seminars (online and in person) to your organisation’s Leadership, HR and Finance teams on this topic. There is no charge and no obligation incurred in booking us to deliver this presentation. Every 45-minute seminar includes:

• An explanation of April’s forthcoming changes with regards to National Insurance Contributions for Employers.
• Examples of how Salary Sacrifice could be implemented by your organisation to offset and mitigate those changes.
• Quantification of how much money your organisation could save through Salary Sacrifice.
• Personalised examples of savings that your employees could make as a result of you implementing Salary Sacrifice within your workplace.