As we step
closer to April 2025, change is on the horizon. This is when the new financial
year starts and we discuss what could impact our business in the coming months.
We’ll explore what is ahead and how to prepare effectively.
National
Minimum Wage
The most
notable one is the rise in National Living Wage and National Minimum Wage. We
are probably familiar with this rising every April.
Take a look at
the table below for the hourly rate changes.
|
|
21 and Over
|
18-20
|
Under 18
|
Apprentices
|
|
Current
|
£11.44
|
£8.60
|
£6.40
|
£6.40
|
|
From 01 April 2025
|
£12.21
|
£10.00
|
£7.55
|
£7.55
|
The
apprenticeship rate applies to apprentices under 19 or 19 and over in the first
year of apprenticeship.
Personal
Allowance
The freeze
continues on personal tax thresholds. Your personal allowance is the amount you
can earn until you start to pay income tax. The personal allowance is currently
£12,570 and set to be until April 2028 where the government will look to
review.
Employer’s NI
Employers NI is
also set to rise from 1 April 2025. Currently employers pay NI on employees
wages at 13.8% when it hits the threshold of £9,100 however, from April the
rate increases to 15% and the threshold falls to £5,000.
To combat against this, the government have
increased the employment allowance. The employment allowance is a credit
against the Employer’s NI. Currently it is £5,000 for the year and will
increase to £10,500. Once you have used up your Employment Allowance, then you
will start to pay Employer’s NI.
Corporation
Tax
There are no
changes in the rates of Corporation Tax. This means that, from April 2025, the small
profits rate will stay at 19% and will be payable by companies with profits of
£50,000 or less.
Companies with
over £250,000 profit will pay corporation tax at 25%.
Companies with
profits between £50,001 and £250,000 will pay tax at the main rate reduced by a
marginal relief, providing a gradual increase in the effective Corporation Tax
rate.
If you're
concerned about budgeting for the latest tax changes, let us know! We are
experts in managing budgets and identifying trends to help you make the most of
your resources. We can work out whether the Employment Allowance is going to
save you money, or cost you money and provide insights and solutions tailored
to your needs. Additionally, if you require any extra services, don’t hesitate
to reach out—we’re here to accommodate your requests and provide the best
possible support. We’re always ready to assist in any way we can!
