The UK government is raising Employers’ National Insurance from 13.8% to 15%. For small and medium-sized contractors, those extra percentage points can make a big difference to your bottom line. Especially if you’re looking to hire new staff or even keep your existing team at full capacity, these costs add up quickly.
Why It Matters
- Higher Staffing Costs: You’ll be paying more per employee, which could squeeze your margins or force tough decisions about hiring.
- Cash Flow Pressures: If you’re not planning ahead, you might find yourself short when the NI bill arrives.
Action Steps
- Revisit Your Budget: Update your financial forecasts to account for the increased NI rate.
- Check for Allowances: If you qualify for the Employment Allowance, it could offset some of these extra costs.
- Price Your Projects Wisely: When bidding on jobs, factor in these new overheads so you don’t undercut yourself.
How Paperdrop Helps
- Real-Time Cost Tracking: Keep tabs on labor costs as they shift.
- Detailed Project Estimates: Build in the updated NI overhead to quotes, so you’re not caught off-guard.
Despite the bump in overhead, with good planning—and the right tools to track every penny—you can stay profitable and keep on hiring, if growth is still in your sights.
