NIC rises and Payrolling of Benefits - challenges and opportunities for insurance brokers

In the final part of a series on the fallout from the 2024 Budget, PKF Littlejohn’s Liam Condron looks at the rise in employer National Insurance Contributions and introduction of the Mandatory Payrolling of Benefits regime, and analyses what these changes mean for insurance intermediaries.

Many of us will be familiar with the changes that are coming over the next year or so.  However, to summarise, from 6 April 2025:

The Employer NIC rate rises from 13.8% to 15%The Secondary Threshold where employers start paying NICs decreases from £9,100 to £5,000 pa per employeeThe Employment Allowance available to all employers (regardless of total NIC bill) increases from £5,000 to £10,500.

Then, effective 6 April 2026, employers will be required to report and process Income Tax and Class 1A