The Autumn Budget: Implications for Payroll
This year’s Autumn Budget brings significant changes that will impact employers and employees alike, but what does this mean for your payroll?
- National Minimum Wage and Living Wage Increases
One of the most significant announcements is the increase in the National Minimum Wage and National Living Wage from April 2025. For 18–20 year-olds, the Minimum Wage will rise from £8.60 to £10 per hour. The National Living Wage for over 21 year olds will increase from £11.44 to £12.21 per hour.
- Changes to Employer N.I. Contributions
Come April, there will be an increase in Employers National Insurance contributions of 1.2% and the threshold for when this is paid will be reduced from £9,100 to £5,000.
- Employment Allowance
In April employment allowance will rise from £5,000 to £10,500 per year and the eligibility threshold will be removed..
- Tax-free Childcare and Family Support
Enhancements to tax-free childcare schemes and additional support for working families were mentioned.
You can find out more about the Autumn Budget here.
Preparing for the Changes
Ensuring your employees are paid correctly is a must and preparation is key! Make sure your payroll software has all the necessary updates, and your staff have been informed about the updates and how they will impact their pay and benefits.
The Government continue to push for digital transformation and advanced payroll software is becoming a necessity to deal with the complexities of modern payroll management.
At CBR Business Solutions, our Payroll team are committed to helping you navigate these changes and remaining compliant. By outsourcing your payroll, you’ll have one less thing to worry about!
You can find out more about our service here, or send us an email to enquires@cbrsolutions.org.uk to find out how we can help.
