Accountant shares his top tips for avoiding rising costs amid national insurance changes

AN accountant and business advisor says that the recent National Insurance (NI) changes could be a positive for many businesses.

Colin Bielckus, founder of Avenue Business Services is encouraging employers to look into what recent changes around national insurance could mean for them.

He says that a lot of the conversation online is around how negative it is for businesses, but he believes that some businesses will be better off thanks to the new changes.

From April 2025, there was an increase in employer National Insurance contributions. The secondary Class 1 NI rate increased from 13.8% to 15%, and the secondary threshold (the earnings level at which employers start paying NI) decreased from £9,100 to £5,000 annually.

However, the maximum Employment Allowance also increased from £5,000 to £10,500, meaning some increased costs could be offset by this.

Colin said: “If your employees are in the 5-10k bracket, which many small businesses are, with part-time staff, you could actually be better off. Allowances could offset any increased contributions.

“The trouble is, a lot of the press around this change has been negative and doesn’t actually help employers to understand what their options are. Like most things, this change is nuanced. Realistically, the top 10% of businesses will probably be negatively affected, but the average small business may actually benefit.”

Colin encourages small businesses to talk to their accountants to determine their options and to look at the Avenue Business Services website for more information and advice.