Budget 2024

Business do face higher costs as a result of the Autumn Budget. Key points include:

Employers will pay NI at 15% on employee salaries above £5k. Currently NI rate is 13.8% for salaries above £9.1k.
Employment allowance - which allows smaller companies to reduce their NI liability to increase from £5,000 to £10,500

With wages and associated costs rising faster than inflation, what changes strategically should you be making?

National Living wage for employees 21 years + will rise from £11.44 per hour to £12.21 (+6.7%)
For 18–20-year-olds, National Minimum wage will increase from £8.60 per hour to £10 (+16.3%)
For 16-17-year-olds, National Minimum wage will increase from £6.40 per hour to £7.55
Apprentice rates if 19 years or younger (or in first year of apprenticeship) will increase from £6.40 per hour to £7.55

Basic rate capital gains tax on profits from selling shares to increase from from 10% to 18%, with the higher rate rising from 20% to 24%
Stamp Duty Surcharge

Paid on second home purchases in England and Northern Ireland, to go up from 3% to 5%
Point at which house buyers start paying stamp duty on a main home to drop from £250,000 to £125,000 in April, reversing a previous tax cut
Threshold at which first-time buyers pay the tax will also drop back, from £425,000 to £300,000

The UK Budget does mean additional costs for employers. Cost pressures include a higher minimum wage and higher employer national insurance.

Rising wages including compliance does mean businesses must improve! Please contact us if you would like to get further help and clarification.

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