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Plan ahead: Explore your National Insurance costs and savings

Use our interactive calculator to see how the upcoming NIC rate changes could impact your business and explore potential savings opportunities.

Our NIC calculator is designed to give you a high-level indication of the potential cost to your business when the rates and thresholds change in April 2025. As a reminder, employer NIC will increase by 1.2% to 15% and the threshold at which employers will start to pay employer NIC will drop from £9,100 to £5,000 per year.

The tool also allows you to get an estimate of the potential savings that could be made by introducing, or increasing the level of, benefits provided under salary sacrifice. In particular, pensions remain an efficient method of reducing your employer NIC bill and also give employers the opportunity to share some or all of that saving with employees which can be a great incentive and retention tool.

Salary sacrifice arrangements however need to be correctly implemented and care should be taken to ensure that lower paid employees do not inadvertently fall below NMW as a result of salary sacrifice. Salary sacrifice may also impact salary based benefits and employees’ ability to borrow money.

If you would like to discuss the impact of the upcoming changes or any mitigation strategies further, please reach out to Oliver Bull or your usual Evelyn Partners contact.

  • Calculations are based on tax rates as of 5 December 2024.
  • The tool does not account for any future legislative changes to NIC rates or thresholds.
  • Results are provided for illustrative purposes only and should not be relied upon for any purpose.
  • This tool does not consider additional employer costs such as benefits or other deductions.
  • The calculations including pension contributions assumes that all employees are eligible for salary sacrifice pensions (e.g. does not factor in NMW considerations).
  • The calculations including pension contributions ignores the qualifying earnings threshold used by some employers to calculate pension contributions.
  • Calculations are based on the assumption that all employees earn above the secondary threshold for NIC purposes.
  • The tool assumes that all employees are paid on a consistent basis across the year.
  • The tool assumes that you are entitled to the full employment allowance and no other Group company has claimed the employment allowance.         
  • No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this calculator.