A rise to 15% in employer National Insurance (NI), combined with a drop in the NI threshold to £5,000 will impact many businesses from April 2025. These two measures unveiled by Rachel Reeves in her first Budget will have enormous consequences on SME's up and down the country.
Once you also add in the 6.7% increase in minimum wage, the Chancellor has made employing staff an even more expensive aspect of a companies' overheads. This will undoubtedly affect a companies' ability to invest in the top talent it requires for growth.
A by-product of this increase for businesses could also lead to more companies engaging a self-employed workforce to avoid the NI hike. If you would like to discuss how to engage a self- employed workforce compliantly, please contact RollPay on sales@rollpay.co.uk.
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