Employer’s National Insurance

Change in threshold for employer's national insurance

Many parish councils will need to budget for employer's national insurance for the first time when setting their 2025/26 budget. They will have to pay these contributions from 6 April 2025, when the threshold where they become payable falls from £9,100 to £5,000.

Any parish or town council with employees earning more than £5,000 a year (£96 a week or £417 a month) but less than £9,100 a year will become liable for the employer's national insurance from April and will need to register as an employer with HMRC prior to 6 April 2025.

More information from NALC

EIM 67300 - Tax treatment of Parish and Community Council Clerks in England and Wales: assessment of payments to clerks