National Insurance rises to 15 percent in April 2025.

For small businesses, that is not a headline. It is a hit to cash flow.

Payroll is already one of your biggest costs. Margins are tight. And now employer NI is climbing again. The temptation is to absorb it and move on.

But what if you could offset some of that increase without cutting roles or freezing pay?

In this episode of Buzzing About HR, we unpack one of the few genuine win-wins available right now: salary sacrifice.

Done properly, it allows employees to exchange part of their gross salary for a benefit they already value, such as pension contributions, an electric vehicle scheme, or cycle to work. Because the swap happens before tax and National Insurance, both the employee and the employer reduce their NI liability.

At a time when NI is rising, that matters.

We break it down simply. How it works. What the savings can look like. And how small businesses are already using it strategically.

You will hear real examples of teams saving thousands a year through pension salary sacrifice while increasing employees’ retirement savings. Retail businesses lowering NI costs through electric vehicle schemes while strengthening their sustainability message. Smaller firms using cycle-to-work to reduce contributions while helping staff cut commuting costs.

This is not about gimmicks. It is about structuring what you are already paying in a smarter way.

We also talk through the practical side. Clear communication. Written agreements. Compliance checks. Salary sacrifice needs to be implemented properly to avoid confusion or risk.

If the NI increase feels like another squeeze on already stretched margins, this episode offers a constructive response rather than a reactive one.

If you want

If you’re not 100% sure how your HR is really holding up, take our free HR Health Check. It’s short, jargon-free, and gives you a clear score on what’s working — and what needs a bit of love.

And if you do it before 1st April 2026, you’ll get a bonus 7 Pillar Strategy-on-a-Page, tailored to help you manage HR brilliantly for the year ahead.

Let’s be honest, culture shifts when people feel safe to speak up.

New rules mean you’re legally required to take reasonable steps to prevent harassment.

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If you're not sure how your HR is really holding up, take the free HR Health Check. It's short, jargon-free, and gives you a clear score on what's working and what could do with a bit of love.

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Got a question or need actual HR support? Find Kate at kateunderwoodhr.co.uk, email [email protected], or follow along on social.

Until next time, keep buzzing, and take care of your people.