Page 42 - P4403.59-V64_Numark Pharmacy Magazine June 25

EMPLOYERS’ NIC INCREASES FROM APRIL

2025: WHAT DOES IT MEAN FOR YOU?

By Team Specialist Accounting Solutions.

Employers will have seen an increase in National Insurance contributions (NICs),
adding extra costs to payroll. From April 2025, the rate of employers’ NICs rose from
13.8% to 15%, alongside a reduction in the secondary threshold at which NICs
become payable – dropping from £9,100 to £5,000 per year.
These changes mean pharmacies will pay more in employment taxes, with many
employers needing to adjust budgets and staffing strategies accordingly.

WHAT DOES THIS MEAN FOR PHARMACIES?
The increase in NICs impacts pharmacies and dispensaries of all sizes, raising
employment costs for every salaried worker. For example, an employee earning
£40,000 a year previously attracted an employer NIC cost of around £4,264. Since
April 2025, this has risen to approximately £5,250 – an additional £986 per employee.

The effects are becoming more pronounced for smaller businesses, especially
where payroll budgets are already tight. The Federation of Small Businesses (FSB)
previously warned that rising employment costs could lead to reduced hiring and wage
stagnation, particularly among SMEs.

WILL THE EMPLOYMENT ALLOWANCE HELP?

To offset some of these increased costs, the government announced that the
Employment Allowance will increase from £5,000 to £10,500. This allowance enables
eligible businesses to reduce their NIC bill by up to £10,500 per year, offering some
relief to smaller employers.
At present, if employers incur an NIC liability of greater than £100,000 then they
can’t claim Employment Allowance (EA). From 6 April 2025 this cap will be removed.
However, this does not fully negate the impact of the NIC increase for many
businesses, particularly those with larger payrolls.

WE OFFER A 10% OFF FEES FOR ALL CURRENT QUALIFYING
NUMARK MEMBERS WHO BECOME NEW CLIENTS.

Website: teamsas.co.uk
Telephone: 0118 911 3777

Email: enquiry@teamsas.co.uk

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