Spring’s not just for sorting out your garage and cleaning the windows – it’s the perfect time to give your business finances a once-over too. And one area that could do with a good check-in? Your payroll.
With National Insurance costs rising this year, and the P60 deadline looming, now’s a cracking time to make sure your payroll setup is still working for you – not against you.
Here are the top 5 things you should be checking in your payroll this spring to stay ahead of the game.
1. Check your Employer NI calculations
The big one for 2025: Employer National Insurance has gone up from 13.8% to 15%, and the threshold where you start paying it has dropped to £5,000.
That means even if you’ve not given out any pay rises, your costs for each employee will have gone up. Now’s the time to double-check your payroll software, spreadsheets, or outsourced providers are using the new rates and thresholds properly.
A few wrong percentages now could mean a nasty shock later – either in unexpected tax bills or a messy year-end tidy-up.
2. Make sure you’re claiming the Employment Allowance
Good news: the Employment Allowance has been boosted to £10,500 this year. This allowance lets eligible businesses reduce their Employer NI bill – and it’s one of the easiest ways to save some cash if you’re employing staff.
It’s easy to miss though, especially if you’ve had a quiet year or changed accountants recently. Double-check that:
- You’re still eligible (you need at least 2 employees above the threshold – single-director companies don’t qualify)
- You’ve actually claimed it in your payroll software or with HMRC
If you’re not sure, give us a shout – it’s the sort of thing we can spot (and sort) in a heartbeat.
3. Review your staff benefits
With employment costs rising, it’s worth asking: Are your benefits still pulling their weight?
Tax-efficient benefits like:
- Cycle to Work schemes
- Electric car salary sacrifice
- Childcare voucher support
…can boost employee morale without whacking up your NI bill even more.
It’s also a good time to check if you’ve accidentally got any “benefits in kind” (like company cars, health insurance, etc.) that you should be reporting on your P11D. HMRC don’t tend to be too forgiving if you miss those.
4. Tidy up your employee records
Before you issue P60s (which need to be out by 31 May 2025!), give your employee records a once-over.
Make sure:
- Names, addresses and National Insurance numbers are correct
- Leavers and starters are properly recorded
- Salaries match up with contracts and pay rises have been applied properly
A few minutes now could save you hours fixing problems later – not to mention avoiding grumpy staff when the paperwork doesn’t add up!
5. Forecast your staffing costs for the rest of the year
With wages, National Insurance and pension costs all edging upwards, now’s the time to look ahead. If you’re planning to hire more staff, boost wages, or offer new bonuses later in 2025, build those extra costs into your cashflow forecast now.
It’s a lot easier to adjust your plans in May than it is in October when you’re already feeling the squeeze.
At AD Accountancy, we work with loads of businesses to build simple, no-nonsense payroll forecasts – helping you spot pressure points before they become full-blown problems.
Final Thoughts: Small Changes Now, Big Savings Later
Spring is all about getting organised – and a bit of time spent on your payroll now could save you a fortune (and a few headaches) down the line.
Need a hand getting your payroll ready for the year ahead?
✅ We’ll help you stay compliant
✅ We’ll help you find savings
✅ And we’ll do it in plain English, without the jargon
Give AD Accountancy a call and let’s sort it before it grows arms and legs.
We’re here to keep your business running smooth – and your payroll stress-free.
