The Autumn budget has been published, and there's a few things from an HR perspective that it's useful for people and business to know. In this quick blog, we cover our top five take aways, but bear in mind there are other elements that might be of interest!
National Minimum Wage Increase
In April 2025 we'll see more increases to the National Minimum Wage. As always this is great news for employees but employers might feel the pinch given that last year we already saw record increases in the minimum wage for the UK. These changes represent a pay rise for 3 million workers in the UK. The new rates will be as below:
21 and Over | 18-20 | Under 18 | Apprentice | |
April 2024 (Current Rates) | £11.44 | £8.60 | £6.40 | £6.40 |
April 2025 (New Rates) | £12.21 | £10.00 | £7.55 | £7.55 |
Additional rules apply to who is eligible for the Apprentice rate, you can see more details here: https://www.gov.uk/national-minimum-wage-rates
Employers should make sure that in April where they have anyone on minimum wage their payroll is adjusted to ensure the new rate is paid and employees should keep an eye on their payslips to make sure this increase is applied.
Employers National Insurance Contribution Increases
Another key change for employers is the increase in National Insurance (NI) contributions. While individual employees will not be directly impacted, employers will face higher costs when it comes to social security contributions.
Non-Dom Tax Status Abolished
In a move to simplify the tax system, the government has announced the removal of the non-domiciled (non-dom) tax status, which allows certain individuals to avoid paying UK taxes on foreign income. This change is designed to ensure a fairer tax system, but it will have broader implications for multinational companies and high-earning professionals, particularly those who may have structured their financial affairs around this status.
Increase in Carer's Allowance
The earnings threshold for carers who receive the weekly allowance of £81.90 will now increase, allowing them to earn up to the equivalent of 16 hours at the new National Living Wage per week. This adjustment, which is the largest since the allowance began in 1976, enables carers to make over £10,000 annually without affecting their eligibility for the benefit. You can see more about Carer's Allowance here: https://www.gov.uk/carers-allowance
Introducing the COVID Corruption Commissioner
Brought in to deal with companies who used the emergency funds provided by the government during COVID to effectively line their pockets, the COVID Corruption Commissioner will work with HMRC, the Serious Fraud Office and the National Crime Agency to examine an estimated £7.6bn worth of fraud committed by companies.
Additional Information
You can see more about the Autumn Budget with these links:
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Disclaimer
All information within the post is provided for guidance only; always seek your own legal advice.
The information with this post was correct at the time of publishing, November 2024 but may be subject to change.
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