Sarah Bradford explains the impact of the increases to employers’ National Insurance contributions announced in Autumn Budget 2024 and considers what action might be taken in mitigation.
Employers fared badly in Autumn Budget 2024 as the Chancellor looked to them to provide £25bn of the additional £40bn that she needed to raise. The revenue target will be achieved by raising the rate of employers’ National Insurance contributions (NICs) and reducing the secondary threshold so that employers will be required to make contributions at a higher rate on more of their employees’ earnings.
However, the axe will not fall evenly, as the employment allowance is also increased from £5,000 to £10,500, which will mean some of the smallest employers will not pay any more in employers’ contributions than they do currently, and may even pay less. However, despite increased access to the
