This week, on October 30th, the government unveiled its Autumn Budget, during which the Chancellor focused on restoring economic stability and rebuilding Britain.
To get your business ready for the upcoming changes, we've outlined what was announced and how it will affect your business.
Key updates are:
Increased employers’ National Insurance Contributions - From 6 April 2025, employers’ National Insurance Contributions (NICs) will increase by 1.2% to 15%.
Frozen Corporate Tax Rate - With a Corporate Tax Roadmap published published as the Budget was delivered, the Chancellor has committed to capping the headline rate of Corporation Tax at 25% for the duration of this parliament.
Increased National Living Wage - From April 2025, the National Living Wage will increase by 6.7% from £11.44 to £12.21 an hour. It will also increase for 18 to 20-year-olds, rising to £10.00 an hour.
Fuel Duty 5p cut frozen for another year - The Chancellor confirmed that fuel duty will be frozen for a year, meaning the headline rate on standard petrol and diesel will remain 52.95 pence per litre.
Business Asset Disposal Relief remains at 10% this year - Currently this means that you only pay 10% on the first £1m on disposal of business assets, eg if you sell your business. However, it will rise to 14% on 6 April 2025, and again to 18% on 6 April 2026.
Small business multiplier rate frozen - For 2025/26, the small business multiplier will be frozen. The Chancellor said that the most valuable properties can expect to see a higher multiplier, while one third of business properties will continue to pay no business rates because of Small Business Rates Relief.
Transportation to get a boost - As part of an ongoing drive for greater adoption of zero-emission cars, Vehicle Excise Duty First Year Rates will change from April 2025.
Sector-based changes - This includes retail, hospitality, leisure, automotive, areospace, Life Sciences Innovation Manufacturing Fund, creative VFX, green hydrogen projects, agriculture and business property.
You can read our full article and get a more in depth look into what these announcements mean for your business, here.
A big thank you to UMi for this update.
If you need assistance preparing your business for the upcoming Autumn Budget changes or would like a clearer understanding, feel free to Email or give us a call to discuss your business with one of our advisers.
