The Budget Bumps: What’s New for UK Businesses from April 2025!
Hold onto your calculators, UK business owners!
The April 2025 tax and budget changes are here, and they’re shaking things up a bit. Whether you’re a small startup or a seasoned pro, here’s what you need to know to stay ahead of the game!
First up, there’s some extra weight on your payroll. Employer National Insurance Contributions (NICs) are getting a little more expensive, so if you’ve got a team, you’ll feel this change in your pocket as move from the 13.8% cost to a higher rate of 15%. But don't worry there’s a silver lining! The government’s throwing a bit of a lifeline with the Employment Allowance, helping you ease those costs this threshold is being taken from the £5,000 to £10,000. The NI threshold is also decreasing from £9,100 to £5,000.
Next, the National Minimum and Living Wage are going up, so it’s time to revisit your payroll. If you’re paying your people at or near the minimum wage, you’ll need to adjust your budget to keep up with the new rates as you'll now have to pay your employees £12.21ph. It's all about keeping things fair and helping your employees earn a decent wage.
And last but not least statutory sick pay is getting a boost from £109.40 to £118.75.
So, there you have it! The UK’s tax landscape is evolving, and it’s time to dust off the spreadsheets and make sure you’re not missing any of these changes. It’s all about staying ahead of the curve and making sure your business is in tip-top shape for the year ahead!
Want some help with budgeting for the above changes within your business?
Get in touch: liz@turpinaccounting.co.uk
We look forward to hearing form you.
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