Employment v Outsourcing

From April 2025, UK businesses will face an increase in employers’ National Insurance (NI) contributions, making the cost of employing staff even higher. For small businesses already managing tight budgets, this could present a significant financial challenge. At Pink Spaghetti, we understand the pressures small business owners face and want to highlight how outsourcing tasks to a Virtual Assistant (VA) can help you reduce costs while staying productive. 

 

In this blog, we’ll break down the impact of the NI increase, what it means for UK businesses, and why outsourcing could be a smarter, more flexible solution. 

 

Employers in the UK currently pay 13.8% in National Insurance contributions for each employee earning above £9,100 per year. From April, this rate will rise, increasing the financial burden on businesses. 

 

For small business owners, this means: 

 

Higher employment costs: The increase will apply to salaries, bonuses, and benefits, driving up payroll expenses. 

Budget pressure: More money will need to be allocated to staff costs, potentially leaving less for investment in other areas. 

Hesitation to hire: If you’re considering growing your team, this change might make you think twice about the affordability of adding permanent staff. 

 

The rise in NI contributions disproportionately affects small businesses, which often operate on tighter margins than larger companies. Costs such as pensions, sick pay, holiday pay, and now higher NI contributions add up quickly, making it harder for small businesses to compete. 

 

For those already stretched thin, outsourcing could be a practical and cost-effective alternative to hiring permanent employees. 

 

Outsourcing provides small business owners with the flexibility to access professional support without the financial and administrative burden of hiring staff. Here’s how outsourcing to Pink Spaghetti can help: 

 

1. Avoid Increased NI Contributions 

When you outsource to Pink Spaghetti, you don’t need to worry about National Insurance, pensions, or holiday pay. You simply pay for the time and tasks you need, avoiding the added costs associated with hiring employees. 

 

2. Scale Support to Your Needs 

With outsourcing, you’re in control. Whether you need help for a few hours a month or more intensive support during busy periods, we provide flexible solutions that grow or shrink with your business. 

 

3. Expertise Without the Overheads 

Hiring staff comes with additional costs like training, office space, and equipment. Outsourcing eliminates these expenses, giving you instant access to experienced professionals who are ready to get to work. 

 

4. Focus on Business Growth 

Delegating tasks to a VA frees you to focus on high-value activities that drive revenue and growth, such as building client relationships or developing new products or services. 

 

At Pink Spaghetti, we specialise in supporting small businesses with a wide range of tasks, including: 

 

✅ Inbox and Diary Management: Keep your communications and schedule running smoothly. 

✅ Social Media Support: Plan, create, and schedule content to maintain your online presence. 

✅ Customer Support: Handle enquiries, order processing, and follow-ups to keep clients happy. 

✅ Admin Tasks: From data entry to research, let us take care of the time-consuming jobs. 

✅ Marketing Assistance: Email newsletters, campaign support, and more to keep your business growing. 

 

Let’s look at the numbers: 

 

Employing Staff: Hiring even one employee means covering their salary, NI contributions, pension contributions, holiday pay, and sick leave—not to mention recruitment and training costs. 

Outsourcing to Pink Spaghetti: You pay only for the time spent on your tasks, with no hidden extras. Whether you need 5 hours of support a month or 20, outsourcing gives you predictable, manageable costs. 

By avoiding the additional financial burden of the NI increase, outsourcing can save you thousands of pounds each year. 

 

If you’re concerned about rising employment costs or simply want to streamline your business operations, outsourcing could be the ideal solution. At Pink Spaghetti, we work with small businesses across the UK, providing tailored, flexible support to help you save time and money while staying productive. 

 

The National Insurance increase doesn’t have to derail your plans for growth. By outsourcing to Pink Spaghetti, you can avoid rising employment costs while still accessing the professional support you need. 

 

Contact us today to see how we can help your business thrive in 2025 and beyond.