With the increase to employers secondary National Insurance to 15% and the lowering of the Secondary Threshold to £5,000 per annum for all payments of wages and earnings from Sunday 6th April 2025, HM Revenue and Customs (HMRC) have published the revised National Insurance Contribution (NIC) tables to be operated.
Payroll software will have been updated in preparation and it is important where installing your own software updates that you have installed the right version. Cloud and service based payroll are likely to have been automatically updated in preparation, and may April paying payroll will have already commenced.
The key date in determining the use of the new calculation is the contractual payment date associated with the payment and not the period of work undertaken and being paid. The correct payment is governed by the contractual payment date which is also reported on the Real Time Information (RTI) Full Payment Submission.
So work undertaken in March but paid on or after 6th April 2025 falls under the new calculation rules under the principle of point of payment.
Also from the 6th April 2025, the Employment Allowance has increase to £10,500 which can be offset against the employers NIC liability for a more broad group of employers than in prior years.
The new tables are:
PAYadvice.UK 4/4/2025