Answers · UK 2025/26
How does employer National Insurance work in the UK?
UK employers pay Class 1 secondary NI at 15% (raised from 13.8% on 6 April 2025) on each employee's earnings above £5,000/year (cut from £9,100). Employment Allowance offsets up to £10,500. NIC is deductible business expense.
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UK employer Class 1 secondary NIC 2025/26 — major changes from April 2025. Rate: 15% (was 13.8%). Secondary Threshold: £5,000/year (was £9,100). Examples. £50k employee: employer NI = 15% × £45,000 = £6,750. £30k: 15% × £25,000 = £3,750. Pre-April 2025: £50k was £5,644; £30k was £2,884 — significant increases. Employment Allowance: offset up to £10,500/year (raised from £5,000). EXCLUDES single-director companies — common limitation. Total cost of employing £30k: £33,750 (12.5% on top of salary). Salary sacrifice reduces employer NI too — saving often shared back to employee pension. April 2025 changes raised UK employment costs significantly.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.