How Does The Increase in National Insurance Contributions Affect Your Business?

What You Need To Know

Following the recent announcement that National Insurance Contributions (NICs) will be increasing at the start of the next tax year, now is the time to act, before your business is landed with a larger National Insurance bill.

The table below outlines the increases you will face if you do nothing. Why not get ahead of the game with Car Benefit Solutions (CBS), who can help you make savings to offset the increase in contributions.

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CBS Can Help
With NICs rising by 1.25% across the board, from April 2022 employers will be contributing 15.05% in NICs on employees’ earnings over £737 per month or £8,844 per annum, up from the current rate of 13.8%. Following the COVID related restrictions, which hit the automotive industry hard, this increase is going to significantly increase payroll costs, especially so for dealerships with a large workforce.
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Not only will the payroll bill increase for employers, but so will the benefits bill, because the increase is also applicable to Class 1A National Insurance Contributions. This means it will cost more to provide benefits-in-kind (BIK), including company cars.

So, with these increases in costs imminent, now is the time to rethink your employee car benefits. Creating business savings to balance out or surpass the extra NICs cost are more important than ever, and CBS are here to help.

Employee Car Ownership Schemes

Savings Benefits

Removes Class 1A NICs
Offer controlled distribution of financial savings
More benefits
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Learn about our Employee Car Ownership Schemes.

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