Search Legislation

Title: (or keywords in the title)

Year:

Number:

Type:

Advanced Search

National Insurance Contributions (Secondary Class 1 Contributions) Act 2025

Table of Contents
Content
Explanatory Notes

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
More Resources
More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
- the original print PDF of the as enactedversion that was used for the print copy
- lists of changes made by and/or affecting this legislation item
- confers power and blanket amendment details
- all formats of all associated documents
- correction slips
- links to related legislation and further information resources

The Act is intended to deliver part of the Government’s long-term plan to repair the public finances and increase investment in public services and the economy in order to unlock growth. To achieve this, the government is asking employers to contribute more. This means, from April 2025, the rate of Employer NICs will increase to 15%, and the per-employee threshold at which employers become liable to pay NICs on employees’ earnings will be reduced to £5,000.
The government will protect many of the smallest businesses by increasing the Employment Allowance to £10,500. More than half of employers will see no change overall from these measures in the next tax year. Eligibility for the Employment Allowance will also be expanded to allow more businesses to claim, with the removal of the threshold of £100,000 of employer NICs bills in the previous tax year.