On the 6th of April, Employers National Insurance Contributions will be increasing. It’s been estimated that the increases, along with the rise in minimum wage – will lead to a 2% increase to employer’s payroll costs in the new tax year. The government’s decision to increase NICs will affect both employers and employees, making it crucial for business owners to understand how these changes will influence their financial obligations. It’s never been more important for the businesses of our City to plan ahead for the year to come.

For businesses, this means an increase in the amount you contribute on behalf of your employees, as well as a potential increase in your own costs if you’re a business owner who also pays NICs. Additionally, the changes could impact your employees, influencing their take-home pay, which may require you to review your payroll procedures and employee communications.

Understanding how much you may owe will give you time to plan and adjust your financial strategies accordingly. Failure to account for these changes could result in unexpected financial pressures, especially for small businesses with tighter margins.

Now is the time to evaluate your current budget and plan for the impact the increase in NICs will have on your cash flow, payroll costs, and overall financial health. Proactively reviewing your finances will help you make the right decisions moving forward and avoid any surprises. At Toast,  we have developed our Employee Cost Estimator specifically designed for business owners to get an idea of how much you may owe in the new tax year, based on your business size and employee structure.

Give your Business a head start , get an estimate and begin to plan ahead today: https://bit.ly/employeecostcalculator