Chancellor uses Autumn Budget to increase Employment Allowance

31 Oct 2024

Chancellor Rachel Reeves used her Autumn Budget to increase the Employment Allowance from £5,000 to £10,500.

The change means an estimated 865,000 employers won't pay any National Insurance next year, and over one million will pay the same or less than they did previously.

The Chancellor stated that the change will permit a small business to employ the equivalent of four full-time workers on the National Living Wage (NLW) without paying any National Insurance on their wages.

The Budget also revealed plans to remove the restriction that currently applies to the Allowance where only employers who have incurred a secondary Class 1 National Insurance contribution (NIC) liability of less than £100,000 in the tax year prior are able to claim.

This change will take effect from April 2025 and means that eligible employers will be able to reduce their NIC liabilities.

Copyright

© 2024 Michael Letch & Partners LLP. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact Us

Please call:
01277 655 626

Quick links

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

Address
Michael Letch & Partners LLP, 146 High Street, Billericay, Essex CM12 9DF

Michael Letch & Partners LLP is a limited liability partnership registered in England and Wales with registration number OC328815.

Michael Letch & Partners LLP is also regulated by the Financial Conduct Authority to carry out specific activities and investment advice (registration number 112064).

The term ‘Partner’ is used to refer to a member of Michael Letch & Partners LLP. A list of members is open to inspection at our registered office at 146 High Street, Billericay, Essex, CM12 9DF.

Michael Letch & Partners LLP is registered as auditors in the United Kingdom by the Association of Chartered Certified Accountants