We know that School Age Childcare services often struggle to see themselves as a business, especially those in the voluntary or charitable sector, however, it is vital that in addition to expert childcare knowledge, services need to have good business knowledge.

SOSCN can help services through our business/financial planning training however, there are business-specific support services available across Scotland and we would encourage you to engage with them. We would highlight that although they might not have specific knowledge of running a childcare business, the overarching business principles, access to training, and networking with other businesses is of value. Sometimes they may also have funding opportunities which businesses can access; financial support is also sometimes available through national governments, such as the employment allowance scheme via UK government.

About National Insurance Contributions - Employee and Employer

There are two types of National Insurance Contributions- one which is paid by an employee and one which is paid by the employer. The first is Primary (Employee) Class 1 National Insurance which is taken directly from an employee’s salary (through PAYE), and the 2nd is Secondary (Employer) Class 1 National Insurance which is an additional contribution paid by the employer.

For both categories, there is a minimum amount that someone must earn before these contributions are paid.

For Primary Class 1 NI Contributions, an employee only starts paying once they are earning £12,570 per year (£417 per month/£272 per week) at a rate of 8%, and this is deducted from gross salary. This stays the same from 6th April 2025.

The minimum amount at which an employer begins to pay National Insurance contributions is considerably lower than that of the employee; the contribution percentage is higher, and it is an extra cost to the employer, over-and-above the employee’s salary.

From the 6th April 2025 both the minimum salary limit and % changed for Secondary (EMPLOYER) National Insurance contributions.

The Secondary (Employer) Class 1 National Insurance contributions rose to 15% from 13.5% (an increase of 1.5%), and the minimum starting salary for paying the NI contributions dropped to £5,000 from £9,000. This means that employers will potentially have to pay for employees who were previously exempt, and at the same time, pay a higher NI contribution rate, so wage bills could increase.

But, don’t panic- despite initial suggestions, a business’ wage bill might actually go down. How is this possible?

Alongside the aforementioned changes there are also changes to the Employment Allowance, which rose from £5,000 to £10,100 per year (an increase of £5,100) and is used to offset NI payments for the employer. The Employment Allowance is basically a sum which is deducted from the employer’s NI contribution bill. So, if an employer’s total annual NI contribution bill is less than £10,100, they won’t have to pay any NI contributions.

The Employment Allowance will now be open to all businesses which pay NI employer contributions; before it was only available to businesses which paid up to £100,000 in annual NI contributions. Please note that the £10,100 is an allowance- businesses do not get this sum of money from HMRC- it is an amount deducted from the first £10,100 of the annual NI bill. For some large businesses this will be used up in the first month, for others it will cover the cost of the whole year, or part of it.

Your accountant/payroll provider will work out the changes in NI.

https://www.gov.uk/claim-employment-allowance

Business Gateway

The Business Gateway provides Scotland-wide free support to businesses of all sizes and from all sectors; there are local offices based across Scotland. Business Gateway offers a range of professional resources, support and tools to help you learn new skills, create new opportunities and develop sustainable strategies for growth. Online resources, tailored advice, webinars and events, and business development programmes are all freely available; topics cover include financial/business planning, marketing, social media, and digital skills.

https://www.bgateway.com

Skills Development Scotland

Skills Development Scotland are also a nation-wide Scotland offering free business support, from the perspective of developing workforce skills and knowledge. In addition to delivering Modern Apprenticeship schemes they sometimes have events or access to funding, as well a number of other services.

https://www.skillsdevelopmentscotland.co.uk

Chambers of commerce in Scotland

There are 8 Chambers of Commerce across Scotland- they are regional organisations set up to support local businesses of all sizes and from all sectors. They provide networking opportunities, events, training and can also provide support on topics such as HR, Health and Safety etc. There is usually a cost to join the local Chamber of Commerce.

Aberdeen and Grampian Chamber of Commerce

https://www.agcc.co.uk

Ayrshire Chamber of Commerce

https://www.ayrshire-chamber.org

Dundee and Angus Chamber of Commerce

https://www.dundeeandanguschamber.co.uk

Edinburgh Chamber of Commerce

https://www.edinburghchamber.co.uk

Fife Chamber of Commerce

https://www.fifechamber.co.uk

Glasgow Chamber of Commerce

https://www.glasgowchamberofcommerce.com

Inverness Chamber of Commerce

https://inverness-chamber.co.uk

Renfrewshire Chamber of Commerce

https://www.renfrewshirechamber.com