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Steps you can take
While the NIC increase is unavoidable, there are steps businesses can take to
manage the financial impact:
• Part time possibilities: Employers could consider taking one or two part-time
employees instead of one full-time employee to access an additional secondary
threshold.
• Employee mix: If employers are adversely affected by the changes they may
wish to revisit their employee mix. For example, consider recruiting employees
under the age of 21 or armed forces veterans who have recently left armed
forces to take advantage of the higher secondary thresholds for these members
of staff.
• Use the Employment Allowance: Eligible businesses should ensure they claim
the full allowance to reduce their NIC liability.
• Consider workforce planning: Outsourcing non-core roles could help mitigate
costs.
• Review payroll budgets: Employers should reassess staffing costs and adjust
financial forecasts to factor in the increased NIC burden.
Final thoughts
With the April 2025 NIC increase now implemented, businesses must plan to
manage rising employment costs effectively. Making informed decisions can help
mitigate the financial impact and ensure continued stability.
At Specialist Accounting Solutions Ltd, we help businesses understand and adapt
to tax changes, ensuring they remain financially resilient.
If you need tailored advice on managing employer NICs, get in touch with us.
Email info@teamsas.co.uk or call 0118 911 3777.
Disclaimer: The information contained in this website is for general information purposes only. The information
is provided by Specialist Accounting Solutions Ltd and while we endeavour to keep the information up to date
and correct, we make no representations or warranties of any kind, express or implied, about the completeness,
accuracy, reliability, suitability or availability with respect to the website or the information on the website for
any purpose. Any reliance you place on such information is therefore strictly at your own risk.
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