As reported by BOSS Federation, the new budget changes focus on significant National Insurance hikes and tax measures impacting businesses, especially within the workplace supplies sector
Following this week’s release of the Autumn Budget, BOSS has released a detailed analysis of the announced changes, highlighting the significant changes to the National Insurance regime and other key tax measures. The upcoming alterations—set to take effect from April 2025—are poised to substantially affect businesses across various sectors, particularly within the workplace supplies industry.
National Insurance
The biggest revenue raiser, and the measure most likely to impact business, are the hefty changes being made to the National Insurance regime. From April 2025:
contributions for employers will increase from 13.8% to 15%.
the threshold at which businesses start paying NIC on a worker’s earnings will be lowered from £9,100 to £5,000.
It’s a rise worth £25bn, and accounts for almost two thirds of the tax increases across the Budget. Critics have claimed that taxing business means indirect costs for workers through potentially lower wages, along with higher prices for consumers.
Employment Allowance will increase from £5000 to £10,500 and the £100,000 threshold will be removed, expanding it to all eligible employers. For the smallest 865,000 companies, no NICs will need to be paid next year (for example a company employing up to four people on mandatory wage rates).
Corporation Tax
A Corporate Tax Roadmap has been published alongside the Budget today, Highlights mentioned in the Budget include capping the Headline Rate of Corporation Tax at 25%, while maintaining the Small Profits Rate and marginal relief at current rates and thresholds.
The permanent full expensing announced by the previous Government will be maintained, but no mention has been made of extending this to leased assets. The £1m Annual Investment Allowance also stays and on Research & Development (R&D), an expert advisory panel will look into improving the admin around R&D reliefs.
Business Tax
Again, the visible high-street businesses (largely retail, hospitality and leisure) have done well. Those sectors will see permanently lower business rates multipliers from 2026 and relief on bills. For all small businesses, the business rates multiplier will be frozen next year.
Capital Gains Tax (CGT)
The lower rate of Capital Gains Tax will increase from 10% to 18% and the higher rate from 20% to 24%. The Government says these rates are still comparable with other G7 countries. The threshold remains at £3000.
CGT rates for Business Asset Disposal Relief will rise gradually to 14% in April 2025.
Plastic Packaging Tax (PPT)
This will increase in line with CPI inflation from 2025 meaning the new rate of PPT will be £223.69 per tonne. Alongside the Budget, the Government Response to the consultation on: ‘Plastic Packaging Tax – chemical recycling and adoption of a mass balance approach’ has been published, which has confirmed that an MBA will be allowed to account for chemically recycled plastic for the purposes of PPT from a future date to be determined.
Driving
To encourage switching to EVs, the First Year Rates of Vehicle Excise Duty will be frozen at £10 until 2029-30, while rates for hybrids and petrol/diesel cars will rise from April 2025.
Fuel duty, though, will be frozen for one year and the temporary 5p cut will be extended to March 2026. This is intended to save the average car driver £59, with a £126 saving for vans and a £1,079 saving for HGVs next year.
Employee finances
For employees, a number of changes have been announced to protect (as slightly ill-defined in recent days) ‘working people’. These include:
Income tax and employee NIs
Income Tax and National Insurance Contributions thresholds will be unfrozen from 2028-29 onward so they can rise in line with inflation.
Mandatory wages
The mandatory wage increases for 2025 were announced yesterday, the headline figure being a 6.7% increase in National Living Wage to £12.21. For 18-20 year olds, National Minimum Wage rate will rise even more significantly, by 16.3% to hit £10.00 an hour.
For a more comprehensive analysis of the Autumn Budget and its potential impacts on the workplace supplies industry, visit the BOSS website.
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