The Chancellor of the Exchequer presented her Autumn Budget 2024 to Parliament onย 30th October 2024. The Budget has brought a series of impactful updates that will reshape the financial landscape for both employers and employees in the UK. Whether you’re a business owner, employee, or economic enthusiast, understanding these changes is essential for navigating the UK’s evolving fiscal policies.
๐๐ข๐ง๐ข๐ฆ๐ฎ๐ฆ ๐๐๐ ๐ ๐๐ง๐๐ซ๐๐๐ฌ๐:
The minimum wage for over 21s, will rise by 6.7%, from ยฃ11.44 to ยฃ12.21 from April 2025. For someone working full time, or a 37.5 hour week, that equates to ยฃ23,809.50 a year, up from ยฃ22,308.
๐๐ฆ๐ฉ๐ฅ๐จ๐ฒ๐๐ซ ๐๐๐ญ๐ข๐จ๐ง๐๐ฅ ๐๐ง๐ฌ๐ฎ๐ซ๐๐ง๐๐ ๐๐จ๐ง๐ญ๐ซ๐ข๐๐ฎ๐ญ๐ข๐จ๐ง๐ฌ:
The rate of National Insurance paid by employers will increase by 1.2 percentage points to 15% from April 2025. This is part of a broader effort to raise revenue for public services and restore economic stability, with the Chancellor emphasising that working individuals will not see tax increases on their payslips.
๐๐๐๐ฎ๐๐ญ๐ข๐จ๐ง ๐จ๐ ๐ญ๐ก๐ ๐๐๐๐จ๐ง๐๐๐ซ๐ฒ ๐๐ก๐ซ๐๐ฌ๐ก๐จ๐ฅ๐:
The secondary threshold for National Insurance, which determines when employers begin paying contributions on employee salaries, will be lowered from ยฃ9,100 to ยฃ5,000 per year. This change is expected to raise approximately ยฃ25 billion per year by the end of the forecast period.
๐๐ฎ๐ฉ๐ฉ๐จ๐ซ๐ญ ๐๐จ๐ซ ๐๐ฆ๐๐ฅ๐ฅ ๐๐ฎ๐ฌ๐ข๐ง๐๐ฌ๐ฌ๐๐ฌ:
To help mitigate the impact of the increased National Insurance contributions, the employment allowance will increase from ยฃ5,000 to ยฃ10,500. The government will remove the ยฃ100,000 threshold, allowing 865,000 employers to pay no National Insurance contributions next year.
If you have any questions about how these changes may impact your hiring strategies or if you need assistance navigating the evolving job market, please donโt hesitate to contact us.ย
