Salary vs dividends: NIC changes
Summary by Whitley Stimpson
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Salary vs dividends: NIC changes
With changes to employer’s National Insurance and the Employment Allowance, now is the time for businesses to review the most tax efficient mix of salary and dividends for directors. From 6 April 2025 the secondary Class 1 National Insurance threshold reduces from £9,100 to £5,000. At the same time the rate of employer’s National Insurance Contributions (NIC) rises from 13.8% to 15%. Cushioning the impact for some smaller employers the Employmen…
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