NI changes from April 2025 and what it means for directors

The changes: The employers’ National Insurance rate is going up from 13.8% to 15%, and the annual salary threshold reduces from £9,100 to £5,000.

The implications: Directors pay pre NI deductions reduces. Payroll needs to be set and monthly returns sent to HMRC if annual salary breaches the £5000 threshold. Threshold is currently £6396.

(The employment allowance goes up from £5,000 to £10,500, but this is not available to companies with only one director-employee on the payroll).