A: The Lower Earnings Limit will increase to £6,500 per year from 6 April 2025. However, the Chancellor announced that from 6 April 2025 the Secondary Earnings Threshold – the level at which employers become liable to pay national insurance on each employee’s salary – will reduce from £9,100 per year to £5,000 per year.
This means that Employers National Insurance contributions will be due at a rate of 15% on earnings above the Secondary Earnings Threshold.
If the company only has one person on the payroll and that person is also a Director then they will not be eligible for the Employment Allowance.
These publications from Markel Tax were correct at the time of going to press and should be considered as principles-based guidance only. To check current validity, call the Markel Tax helpline. ICAEW (as distributor) disclaims all liability for any errors or omissions.
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