Today is Halloween and Labour’s first autumn budget in 14 years has just arrived.
It’s full of important changes that could shape how companies hire and manage talent. Let’s take a quick look at the highlights and see if you’ll be spooked or pleasantly surprised by what they might mean for you.
Table of Contents
Higher National Insurance Costs
Starting April 2025, employer National Insurance will rise from 13.8% to 15%. Plus, the salary threshold where this kicks in will drop from £9,100 to £5,000. This could add noticeable costs to payroll. Paired with a higher minimum wage, businesses may start leaning more towards contract or temporary roles over permanent hires.
Capital Gains Tax (CGT) on Business Sales
The CGT on business sales is going up to 24%, though the £1 million relief for business sales remains. This could impact investors or anyone considering selling their business but leaves some support for small business exits.
Bigger Employment Allowance
Employment Allowance is nearly doubled, which helps offset payroll taxes for smaller businesses. But for larger firms, the benefit may be offset by rising National Insurance costs.
New Rules on PAYE for Agencies
From April 2026, agencies will need to handle PAYE more carefully, so there’s an 18-month window to make sure payroll processes are up to scratch.
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Stable Corporation Tax
The corporation tax rate is set for the next five years, which gives a bit of predictability for future planning—helpful in budgeting amid other rising costs.
Extra Support for Startups
Funding programs for startups are extended to 2035, so new businesses still have access to essential investment support, which could fuel more growth and innovation in tech.
More Public Sector Spending
With more investment going into public services, those working in the public sector may see more projects and growth opportunities.
These changes bring new costs but also a few opportunities.
If you’d like to chat about them, feel free to get in touch.
