05 Nov Key Updates in Business Taxes, Wages, and Benefits following the 2024 Autumn Budget
Key Updates in Business Taxes, Wages, and Benefits following the 2024 Autumn Budget
At EA Assist we offer a comprehensive outsourced payroll function for you and your business. The payroll function is ever changing and we are here to ensure that you stay complaint and avoid penalties.
Here’s a breakdown of the changes that will affect payroll following the budget on 30th Octob 2024:
Business
National Insurance Contribution Increase
From April, National Insurance (NI) for companies will rise to 15% on salaries exceeding £5,000, up from the previous 13.8% on salaries over £9,100. This increase is projected to generate an additional £25 billion annually for public finances.
Expanded Employment Allowance
Smaller businesses can anticipate greater relief, as the Employment Allowance – a reduction in NI liability – will increase from £5,000 to £10,500. This change is designed to offer enhanced support to small businesses.
Higher Tax on Private Equity Profits
Private equity managers will see an increase in taxes on profits from successful deals, with rates going up from a maximum of 28% to a new cap of 32% starting in April. This adjustment is intended to ensure greater tax contributions from the sector.
Wages, Benefits, and Pensions
Minimum Wage Increase
The legal minimum wage for workers over the age of 21 will rise from £11.44 to £12.21 per hour. Additionally, the rate for 18 to 20-year-olds will increase from £8.60 to £10 per hour, as part of a broader objective to establish a “single adult rate” over time.
State Pension and Benefits Adjustment
Basic and new state pension payments will increase by 4.1% next year, following the “triple lock” commitment, which mandates that pensions rise by the highest of inflation, average earnings, or 2.5%. This increase is set to exceed the adjustments made to working-age benefits.
Extended Carers’ Allowance Eligibility
For full-time carers, eligibility for the carer’s allowance will broaden, with the maximum weekly earnings threshold increasing from £151 to £195. This change allows carers to earn more while still qualifying for support.
How can EA Assist help you and your business
For assistance with implementing any of the payroll updates or understanding how they impact your business, please don’t hesitate to reach out to our team at EA Assist.
We’re here to provide expert guidance and ensure your payroll function is completed on time and with accuracy.
Get in touch with us now to see how we can help with your payroll function leaving you to focus on running your business.