The recently unveiled 2024 budget is shaping up to have significant implications for businesses across the UK. As a payroll services provider, understanding these changes is critical to ensure compliance and optimize payroll processes. Here’s a breakdown of the budget’s key highlights and their potential impact.
1. Minimum Wage Increase
The Chancellor announced a rise in the National Living Wage to £12.21 per hour (21 and over), £10.00 per hours (18-20 years) £7.55 per hour (16-17 years) from April 2025. This increase directly impacts payroll calculations, especially for industries reliant on minimum-wage employees. Employers should review their payroll systems to ensure timely adjustments, avoid non-compliance penalties, and communicate changes effectively to staff.
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2. National Insurance Adjustments
The government has reduced the Employer’s National Insurance Contributions threshold from £9,100 per annum to £5,000 per annum. The rate of Employer's National Insurance has also increased from 13.8% to 15.0%. These changes are effective from April 2025.
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3. Employment Allowance Increase
To help reduce the cost of the ER NICs changes for small employers the Employment Allowance will increase from £5,000 per annum to £10,500 per annum. We would encourage all employers to analyse the effect of these changes on the cost of employment overall before they take effect in April 2025.
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How Wages Payroll Services Limited Can Help
Navigating these changes can be challenging, but that’s where we come in. At Wages Payroll Services Limited, we specialise in providing tailored payroll solutions to ensure compliance, accuracy, and efficiency. From handling minimum wage updates to automating changes in thresholds and rates, we’re here to help your business adapt seamlessly.
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Next Steps for Employers:
1. Review your payroll processes to incorporate 2024 budget changes.
2. Communicate updates to your employees to maintain transparency.
3. Leverage expert payroll services to stay ahead of compliance requirements.
Let us handle the complexities of payroll, so you can focus on growing your business. Contact us today to discuss how we can help!
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Author: Ross Johnson (Director)
Contact Wages Payroll Services Limited:
📧 Email: ross@wagesps.co.uk
📞 Phone: 0191 447 6500
🌐 [Visit our website](https://www.wagesps.co.uk)
*(This blog is for informational purposes and should not be considered financial or legal advice.)*
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