National Insurance Employer 25/26

National Insurance Employers

📣 for

Businesses

Accountants

Book keepers

Payroll advisors

Ideal salary for the tax year 24-25 for a Director with no employees was £758.33 per month, which, was ⬇️ Tax/Ni EE/Ni E’r

However, the Government have altered some thresholds and the new amount is £542 per month, which is ⬇️ Tax/NI EE/Ni E’r for the current Tax Year 25-26

Rather than pay yourself a low monthly salary to save National Insurance Employer

It would be advisable to have basic salary of £1,047.50 where

Tax ❌ 🟰 £0

National insurance employee ❌ 🟰 £0

National insurance employer ✅ 🟰 £1,885.50 for the year

National E’r is allowable ✅ as an expense to reduce profit and corporation tax

The saving on Corporation Tax @ 19%🟰 £2,388.30, which could be higher if the Business profit is subject to either

Corporation Tax with Marginal Relief

Or

Highest rate of business profit ⬆️ £250,000

Of course if a business has either

2 Directors

Or

1 Director & 1️⃣ employee

Then the business can claim the Employment Allowance up to £10,500 to offset against any National Insurance Employer

If you are unsure 🧐 or would like to discuss your Payroll in more detail

Please feel free to reach out