Page 62 • The HERALD • 24th April 2025 v THE HERALD - Your Community Magazine v ASK A PROFESSIONAL Top 10 Ways Hampshire Businesses Can Mitigate National Insurance Changes Advice from HWB Chartered Accountants A local accountancy and business advisory rm has come up with 10 ways to mitigate the major National Insurance Contributions (NIC) changes that kicked in on 6th April. HWB Chartered Accountants based in Chandler’s Ford has produced a free checklist for Hampshire’s 127,564 registered companies, along with many other businesses. Director James Alesbury said: “The NICs rate increased from 13.8% to 15%, and the secondary threshold has decreased from £9,100 to £5,000. This means, for an employee with an annual salary of £37,000, an employer’s NICs has increased by £950 per year. For a business with 20 employees, this could mean an additional £19,000 in costs and a huge extra burden on stretched resources. We feel it is crucial that directors and business Insurance changes: 1. Utilise the increased Employment Allowance, which rises from £5,000 to £10,500 from April 2025. is allowance is available to all eligible businesses regardless of previous NICs liabilities. 2. Review payroll practices and consider implementing efficient payroll so ware. 3. Introduce or enhance salary sacri ce schemes for benefits such as pensions or electric vehicles which can reduce NICs liability. For example, an employee earning £37,000, paying 5% into their pension via salary sacrifice could save an employer £278 annually and the employee would also be £148 better o . 4. Explore flexible working arrangements. 5. Outsource non-core functions to reduce payroll costs. 6. Invest in employee training and development to improve productivity. 7. Review pricing strategies to offset additional overheads. 8. Improve cash ow management with accurate forecasting. 9. Invest in technology to streamline processes. 10. Consider foregoing pay rises to meet the new obligations. James, who has been with HWB since 2010, stressed that any business seeking to implement radical changes should take professional advice rst. Chartered accountants HWB, based at Chandler’s Ford, near Southampton, provides business and tax advice. leaders are fully informed about the steps they can take at this time to mitigate the National Insurance changes as best as possible. To give something back to the community in which we operate, we have come up a Top 10 strategies list to not only cut costs but also boost the business and keep staff on side.” Top 10 strategies to mitigate National HWB Chartered Accountants Director James Alesbury
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