Recent changes to the Employment Allowance could mean significant savings on your National Insurance contributions from the 2025/26 payroll year.
The government has removed the previous £100,000 limit on secondary Class 1 National Insurance liabilities (the employer's contribution to NI). This makes the Employment Allowance – a relief that reduces your employer National Insurance bills – available to a larger pool of employers. Even better, the allowance itself has increased to £10,500 per year!
In short, you could be eligible to reduce your annual National Insurance bill by up to £10,500 as of April 2025. This can free up valuable resources for your school, academy or trust, allowing you to invest in growth, training, or other essential areas.
Schedule your payroll assessment today to ensure you're maximising these savings
We're committed to making payroll as seamless and efficient as possible for our clients. Where you're eligible, this updated Employment Allowance will be automatically applied to your payroll. You don't need to take any action!
Please be aware that for maintained schools, automatic application may not occur, as the local authority is often considered the employer. Public authorities are generally ineligible unless charitable status applies.
Don't worry! Our payroll team are here to help. If you're unsure whether you qualify for the Employment Allowance or if you'd like a review of your specific circumstances, please don't hesitate to contact us. We can assess your eligibility and ensure you're taking full advantage of any available savings.
For detailed information on the Employment Allowance and eligibility criteria, you can visit the official GOV.UK Employment Allowance guidance.
Navigating the complexities of payroll can be time-consuming. Focus on what you do best – running your school or trust. Let our payroll experts ensure you maximise your £10,500 Employment Allowance benefit whilst maintaining full HMRC compliance.
Contact us today to learn how our education payroll specialists can help you capture these savings with no additional administrative burden.