The changes in the autumn budget to national insurance and the minimum wage has got a large number of businesses in a panic over the possible increased costs, both smaller and larger businesses alike. But how much will it affect your business?

In simple terms, the national insurance tax rate for employers is increasing from 13.8% to 15% along with a decrease in the threshold before national insurance is due from £175 a week to £96 a week. These combined sound like a major increase in costs, especially for smaller businesses who may not have paid any national insurance before.

However, there is some good news as the employment allowance (which reduces your national insurance liability) will increase from £5,000 to £10,500 which will soften the blow for most small businesses. These changes will take affect from 6 April 2025.

The national minimum wage is also changing from 6 April 2025, going from £11.44 to £12.21 for anyone aged over 21 and slightly higher increases for anyone falling into the lower age brackets.

The combined effects of all of these can make it very difficult to work out the real world affect and costs on your business. If you’d like to know more about the changes or would like to know what the changes will get cost your business, please get in contact with us. We can provide more detail or help you work out the real-world costs for the upcoming tax year.

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