Sarah Bradford outlines changes to the employment allowance for 2025/26 and explains how to claim.
Alongside the October 2024 Budget announcement of National Insurance contributions (NICs) hikes for employers from 6 April 2025, there was a nugget of good news – the employment allowance was also increased from the same date.
This is particularly helpful for the employers at the smaller end of the scale who are eligible to claim the allowance, as despite the increase in the secondary rate and the fall in the secondary threshold; they find that they actually pay less in secondary Class 1 NICs in 2025/26 than in 2024/25.
Secondary Class 1 NICs rates and thresholds
For 2025/26, the rate of secondary Class 1 NICs payable by employers is set at 15%, up from 13.8% for 2024/25. To compound matters, the secondary threshold is reduced to £96 per(&
