We know that you will have plenty of questions following the Autumn 2024 Labour budget today. To help with any initial questions we have outlined the main changes that may affect you as a business owner:

Employers National Insurance From April 2025:

• The rate of National Insurance paid by firms will rise from 13.8% to 15%
• The earnings threshold will also be lowered to £5,000 per year from £9,100 per year
• Employment allowance will increase from £5,000 to £10,500 per year (meaning employers don’t pay the first £10,500 owed in Employers National Insurance contributions per annum)

National Minimum Wage From April 2025:

• The Minimum Wage will be increasing by 6.7% to £12.21
• The age band of 18-20 year olds will also see a 16.3% increase to £10, this will be the first step in having a single rate for all adults
• Apprentice wage will jump from £6.40 to £7.55

Capital Gains Tax From April 2025:

• Increased lower rate of Capital gains tax from 10% to 18%
• Increased higher rate of Capital gains tax from 20% to 24%
• No change to Residential property rates at 18% and 24%
• Maintaining the lifetime limit for BADR (Business Asset Disposal Relief) at 10% rising to 18% by 2027

Inheritance Tax:

• Nil rate Inheritance Tax threshold extended until 2030
• Inherited pensions subject to Inheritance Tax from 2027

Other Key Changes:

• Increased interest rates on HMRC debt for late tax payments
• VAT on private school fees from 2025
• Electric vehicle incentives to be maintained

If you do have any questions regarding any part of the budget today please don’t hesitate to contact us via phone or email and we will be happy to explain further.

Thanks,

The Think Kudos Team