UK Autumn Budget 2024 Highlights

Personal Tax Increases: Income tax thresholds are frozen until April 2028, moving more people into higher tax brackets over time.
Employer National Insurance Increase: Effective April 2025, employer NIC rates will rise by 1.2%, with no change for employees. The NIC threshold for employers will reduce from £9,100 to £5,000 annually, which means employers will pay NICs on more earnings. To help small businesses, the employment allowance will increase to £10,500 from the same date.
National Minimum Wage Increase: From April 2025, the National Living Wage for workers aged 21 and over will increase by 6.7%, reaching £12.21 per hour.
Capital Gains Tax (CGT) Rate Hike: CGT rates will increase in April 2025 to 18% for basic-rate taxpayers and 24% for higher-rate taxpayers, with the annual exemption threshold also dropping to £3,000.
Business Asset Disposal Relief (BADR): Qualifying business owners can still access BADR with a reduced CGT rate. This rate will rise from 10% to 14% in April 2025 and further to 18% in April 2026, with the £1 million lifetime limit remaining unchanged.
Business Rates Relief for High Street Retailers: To support high street businesses, the government has extended relief, offering a 40% reduction in business rates for eligible retail and hospitality businesses, capped at £110,000.
VAT on Private School Fees: VAT will apply to most private school fees beginning in January 2025, with exemptions for certain special educational needs.

The table below summarises the increased employment costs for both a £30,000 salary and a minimum wage earner:

The increase in the employment allowance to £10,500 will help smaller employers cover these additional costs, easing the impact of the NIC and minimum wage changes.

Published On: 31 October 2024