The Government’s Autumn Budget has been announced. We highlight key changes being made that will impact employers across the UK.
(Please note, the following changes will take effect from April 2025)
National Insurance to rise to 15% for Employers
The Chancellor announced that employers’ National Insurance contributions will rise from 13.8% to 15%. As a UK employer, this will mean that your total cost of employing staff will increase.
In addition to this, the threshold at which UK employers will start paying National Insurance on their employee’s earnings will be lowered from £9,100 to £5,000.
The Office for Budget Responsibility has recently published its Economic and Fiscal Outlook (Oct 2024) which shows that increasing National Insurance Contributions could impact hiring and unemployment figures, and the cost of goods and services.
However, they do also note that impacts on businesses may be mitigated by the planned increase in the Employment Allowance and by the removal of the Employment Allowance Threshold.
Increase of National Living Wage
The National Living Wage will rise by 6.7% in April, from £11.44 an hour to £12.21. This is an increase of £1,400 a year for a full-time employee on the National Living Wage and is expected to benefit over 3 million employees across the UK.
Not sure how these changes will impact your business?
Wondering where to start with ensuring your NICs are correct? At Quartz, we ensure your payroll is accurate and compliant with all tax legislation. If you’d like to know more about our fully managed payroll service, request a quote today.