Minimum Wage

1. An increase in living wage (the legal minimum for people 21 and over) from £11.44 to £12.21 from 1 April 2025 (6.7% increase).

2. The government intends to increase the minimum wage for 18 to 20 year olds to be in line with the living wage over the coming years and has taken a step towards that goal by increasing the minimum wage for 18 to 20 year olds from £8.60 to £10.00 from 1 April 2025 (16.28% increase).

3. The apprentice minimum wage is increasing from £6.40 to £7.55 from 1 April 2025.

Tax, National Insurance & VAT

1. Employer’s national insurance will increase from 13.8% to 15% from 1 April 2025.

2. The secondary threshold (the point at which employers begin to pay employer’s national insurance) is being decreased from £9,100 to £5,000 from 1 April 2025.

3. Employment allowance (the relief small employers get on national insurance) is increasing from £5,000 per year to £10,500 per year from 6 April 2025.

4. Capital gains tax is being increased on normal capital gains (any which are not classed as residential property) from 10% to 18% for gains falling within the basic rate band and from 20% to 24% for gains falling into the higher rate band.  This brings the capital gains tax rate into line with those of residential property sales.  This change comes into effect from today (30 October 2024), note there is a special provision for any sales where a contract has been entered into on or before 29 October 2024.

5. The minimum tax rate for gains which qualify for business asset disposal relief (a relief that regularly applies to share sales in small companies) is being increased to 14% from 1 April 2025 and 18% on 1 April 2026.

6. VAT will be chargeable on private school fees from 1 January 2025.

If you have any questions about how the budget may affect you, please feel free to book in a meeting with us here: