Since the 6th of April 2025, your National Insurance contributions (NIC) rates have been higher.
Last year, in the 2024 Autumn Budget, Chancellor Rachel Reeves announced the rate of employers’ NICs will increase from 13.8% to 15%, from April 2025.
They also announced a “cut in the secondary threshold – which is the point at which employers become liable to pay NICs on employees’ earnings – from £9,100 a year to £5,000 a year” and an “increase in the Employment Allowance. This currently allows businesses with employer NICs bills of £100,000 or less in the previous tax year to deduct £5,000 from their employer NICs bill. The Allowance will be increased from £5,000 to £10,500, and the £100,000 threshold for eligibility will be removed, to expand it to all eligible employers with employer NICs bills.”
It’s a lot, especially for SMEs just looking to get by, support their employees and grow responsibly. We get it, at Catalyst, we’ve also felt the squeeze that the new NI rates bring. However, the first thing that many organisations do as soon as cash flow tightens is they cut marketing.
This is a mistake, but we understand why it happens.
Internal marketing teams are very, very expensive. To see results, you need (at a minimum) a:
- Marketing manager
- Designer
- Copywriter
- Search specialist
That’s why many businesses are turning to outsourced marketing departments as a cost-effective alternative to hiring internally. Here’s why:
Outsourcing marketing gives you access to a broad marketing skillset for a fraction of the price
Many finance experts (such as Sage) recommend outsourcing as much as possible (especially for the foreseeable). There are many reasons for this: it allows you to be more flexible, it cuts your NI bills, but most importantly, it allows you to access a broad range of digital marketing skillsets for much, much less.
Let’s use our team as an example. Catalyst is split into seven divisions, each with its own unique specialism. These teams work together to become a unified digital marketing team for our clients. To hire this team of people, it would cost hundreds of thousands of pounds every year (a number that only stands to increase with NICs being on the rise).
To hire Catalyst? It’s a fraction of the price. Having a complete in-house marketing team is only feasible for large enterprises with significant financial backing. For SMEs like us, outsourcing is the logical option.
Does this mean that you no longer need any in-house marketing staff? Not necessarily. We work with many organisations that have internal marketing teams; we augment their skillsets, providing extra resources that they don’t have access to – it’s all about finding the perfect balance that works for your business, taking into account cost and feasibility.
Outsourcing marketing lets you save on employee-related costs
Following on from the above, outsourcing your marketing means you can cut down on:
- Holiday and sick pay
- Pension contributions
- National Insurance contributions
- Training & development costs
- Annual wage increases.
With an agency, you pay a fixed, scalable fee, making your outgoings significantly more stable and predictable.
Outsourcing marketing is significantly faster and cheaper than recruiting
Recruiting and onboarding a new employee can take months and cost thousands in advertising, recruiter costs, interviews and training.
Outsourcing, on the other hand, provides you with access to expertise immediately, without the lengthy recruitment process, meaning you can seize opportunities quickly, rather than waiting for onboarding to finish.
Additionally, hiring in-house means committing to long-term costs, even if demand fluctuates. With an agency, you can scale efforts up or down based on business needs, avoiding overstaffing or last-minute hiring rushes.
To help break down the true cost savings you often see by outsourcing, we created this comparison chart:
Example based on UK averages. Agency costs vary by scope but typically offer significant savings.
It’s not all just about cost savings…
Outsourcing isn’t just about cutting expenses; it’s about driving better results. Agencies:
- Bring fresh perspectives to stagnant strategies.
- Have established processes to launch campaigns faster.
- Leverage industry connections (e.g., PR contacts, premium tools).
As the changes to NICs aren’t going anywhere, now might be the perfect time to consider partnering with an experienced, commercially focused digital marketing agency. An agency just like Catalyst.
We understand that now, of all times, might not feel like the right time to invest, but if you’re looking to become more financially resilient in the face of rising costs, you need to grow your revenue.
The only way you’re going to grow your revenue is by generating and closing more leads. This is the core focus of our marketing efforts. On average, we:
- Increase leads generated by 67%
- Increase engagement across all channels by 32%
- Increase conversion rates by over 100%
So, what’ll it be? If you’d like to learn a little more about our client successes, click here.
If you’re ready to book a no-obligation chat with a member of our specialist team, click the link below. We’re here to answer any questions you may have.
Talk to Catalyst about outsourcing marketing