Hey Company Directors! Quick Heads-Up on Staff Costs (Including Yours!)

Guess what? While there are a few tweaks to what your company pays on top of salaries, there's a brilliant perk many of you are already benefiting from – and it's getting even better!

For Sole Directors

The Key Changes (A Quick Recap - Directly Impacts You!)

• Remember, the point where Employers' NICs start is dropping to £5,000 a year for everyone.

• The rate for Employers' NICs is going up a little to 15%.

Important Note: The Employment Allowance Typically Doesn't Apply

As a solo director, the Employment Allowance generally does not apply to your company. This means the Employers' NICs changes will have a direct impact on your company's staff costs (your salary).

What This Means for YOU:

• The Employers' NICs changes (lower threshold and higher rate) will likely result in an increased cost for your company, as you won't benefit from the Employment Allowance to offset these.

What You Need to Know:

• You should be aware that your company's costs related to your salary will likely increase due to these changes.

• The graph below illustrates the impact of these changes for companies like yours.

Solo Directors, You're in a Clear Spot!

While the rules are changing, for solo directors, the impact of Employers' NICs changes will be more direct. Keep focusing on your business; if you have any questions, don't hesitate to reach out!

For Directors with Employees

The Key Changes (A Quick Recap - Applies to You Too!)

• Remember, the point where Employers' NICs start is dropping to £5,000 a year for everyone.

• The rate for Employers' NICs is going up a little to 15%.

The Fantastic News: The Employment Allowance – Your Secret Weapon!

Now, listen up, directors with teams! There's something called the Employment Allowance, and it's like free money from the government to help with the cost of employing people.

• You Might Already Be Claiming It! If you have employees (even just one non-director, or at least two employees if one is a director), chances are you're already benefiting from this allowance without even realising it! Gold Stag handle this behind the scenes for you.

• It's Getting BIGGER! From April 2025, this allowance jumps to a whopping £10,500 per year! That's a significant chunk of potential savings on your Employers' NICs bill.

• Think of it This Way: That extra cost from the lower threshold and higher rate? This bigger Employment Allowance can often help to completely wipe it out, or at least significantly reduce it, for many businesses with staff.

What This Means for YOU:

• Less to Worry About! Because of this boosted Employment Allowance, the actual impact of the Employers' NICs changes might be less significant than you think, especially if you have a smaller team.

• Keep Doing What You're Doing! If you have employees, you're likely already set up to benefit from this. We'll continue to ensure you're claiming this valuable allowance.

What You Need to Know & Do:

• Trust Us (We've Got This!): If you have employees, rest assured, we're on top of claiming this Employment Allowance for you.

• Big Teams, Still a Benefit: Even if you have a larger team, that £10,500 allowance is still a significant saving.

• Double-Check if You're Unsure: If you're a director with employees and are unsure if you're claiming the Employment Allowance, give us a shout! We're happy to confirm.

Directors with Teams, You're in a Good Spot!

While the rules are changing slightly, the boosted Employment Allowance is a fantastic perk many of you already take advantage of. Keep focusing on your business, and we'll keep making sure you're benefiting from these allowances!