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Salary vs dividends: NIC changes

Summary by Whitley Stimpson
With changes to employer’s National Insurance and the Employment Allowance, now is the time for businesses to review the most tax efficient mix of salary and dividends for directors. From 6 April 2025 the secondary Class 1 National Insurance threshold reduces from £9,100 to £5,000. At the same time the rate of employer’s National Insurance Contributions (NIC) rises from 13.8% to 15%. Cushioning the impact for some smaller employers the Employmen…
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Whitley StimpsonWhitley Stimpson

Salary vs dividends: NIC changes

With changes to employer’s National Insurance and the Employment Allowance, now is the time for businesses to review the most tax efficient mix of salary and dividends for directors. From 6 April 2025 the secondary Class 1 National Insurance threshold reduces from £9,100 to £5,000. At the same time the rate of employer’s National Insurance Contributions (NIC) rises from 13.8% to 15%. Cushioning the impact for some smaller employers the Employmen…

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Whitley Stimpson broke the news in on Monday, March 31, 2025.
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