Question 1

What is the employer NI rate for 2025/26?

Accepted Answer

From April 2025, the employer NI rate is 15% on earnings above the secondary threshold of £5,000 per employee. This increased from 13.8% in the previous tax year, adding significant cost for employers.

Question 2

What is the employer NI secondary threshold?

Accepted Answer

The secondary threshold for 2025/26 is £5,000 per employee per year. You only pay employer NI on the portion of each employee’s salary above this threshold. The threshold was reduced from £9,100 in the previous year.

Question 3

What is Employment Allowance and how much is it?

Accepted Answer

Employment Allowance lets eligible employers reduce their employer NI bill by up to £10,500 per year. It’s claimed through your payroll software and applied automatically against your NI liability each pay period.

Question 4

Who qualifies for Employment Allowance?

Accepted Answer

Most employers qualify for Employment Allowance, but you cannot claim if your only employee is a director with no other staff, or if your employer NI bill was over £100,000 in the previous tax year. Connected companies and charities have additional rules.

Employer NI Calculator 2025/26

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