2024 Budget - Key Updates Business Owners Need to Know | Bee Connected HR
- Rachel Williams
- Nov 5, 2024
- 3 min read
The latest Autumn Budget is here, and with it, some significant updates to the labour market that could impact how you run your business.
What does the budget mean for small businesses like yours?
Here’s what you need to know, without the heavy jargon.
Wage Increases 2025/26
One of the biggest changes is the rise in the National Living Wage (NLW) to £11.00 an hour for those aged 23 and over, which starts in April 2025. For many of us, this means recalculating payroll to ensure compliance. While it’s a great boost for employees, it’s something to budget for now to avoid surprises down the line. If you’re running a small business, now’s the time to factor these costs into your financial planning.
The government is also raising the minimum wage across other age groups, which may affect younger team members and apprenticeships. Keep in mind these rates also impact holiday pay, overtime, and pensions, so include these within your budgeting.
Skills Funding & Employer Incentives
The government is offering new funding to help businesses UPSKILL and train its employees. Grants and incentives are being set aside specifically to encourage small business owners to offer training and development, especially in digital skills. Take advantage of these! Investing in upskilling can improve productivity and retain your staff.
National Insurance Contributions
This budget also included updates on National Insurance Contributions (NICs). The details vary depending on your employee’s income brackets, the general takeaway is that NICs are adjusting to reflect inflationary pressures.
And don’t forget the Employment Allowance, which lets eligible businesses reduce their NIC bill by up to £5,000. If you haven’t claimed it yet, make sure you do, as it’s a valuable way to keep costs down. https://www.gov.uk/claim-employment-allowance
Improved Support for Working Parents
If you’re finding it tough to keep valued employees who are also working parents, the expanded childcare support in the budget could be a game-changer. There will be further extended free childcare hours, which will go towards making it easier for parents to manage work and home life (I know first hand how valuable this will be). A thumbs up for better flexibility and stability for a work life balance - YAY.
Help for Self-Employed and Small Biz Funding
The budget also outlines some improvements for those who are self-employed. Specifically, there’s a streamlined tax return process, making it easier to report earnings with less paperwork. If you’re anything like me the dreaded tax return is such a headache so this deserves its own “Hallelujah”!
Also, if you’re looking to invest in growth, new funding is being released for small businesses to encourage new ideas, INNOVATION and expansion. From new grants to loans there may be something out there for you to get the ball rolling on a new idea or a 2025 growth plan. Check out the full list here: https://www.gov.uk/business-finance-support
The 2024 Budget in a Nutshell
Uplifts in pay, payroll adjustments, and funding incentives, it’s time to review your budget for 2024-2025 as a priority.
Take advantage of any funding available, and use this opportunity to strengthen your business operations.
If you’re unsure where to start in your small business, this could be a great moment to connect with your existing accountant ..(or me!) as your HR consultant, to break down how these updates will impact your specific business.
Don’t forget to check back regularly with future employment updates!
Rachel,
Comments