Thomas Mansfield Solicitors’ Post

We break down the key points for #employers from the UK Government's 2024 #AutumnBudget, which includes changes to minimum wage, employer National Insurance Contributions, and the taxation of umbrella companies. #employmentlaw

The Conservative manifesto is out and whilst there is a fair amount of data and policy within it, not much expansion on the points that are being made, making it really hard to interpret who, when and why! See below for the changes to policy for the Conservatives 🌳 : 🌳 The current government have continuously cut National Insurance for employees over the last few years and their manifesto continues that trend, with a pledge to cut employee's national insurance to 6% by 2027 estimating a tax saving of £1,350 from the start of this year if you earn £35k per annum 🌳 Continuing with National Insurance, the Conservatives also want to completely abolish National Insurance contributions for Self employed workers by the end of this next parliament. This would mean 4 million self employed people would no longer pay National Insurance at all 🌳 Another interesting pledge and one that always becomes a huge point of discussion around April time with agency partners is National Living Wage. The government are looking to continue their algorithm of working out the living wage for the next two years, meaning it can expected to be around £13 per hour by 2026 🌳 Tax avoidance - rather appropriate in our sector and whilst the positive headlines are that the estimate gain from the 200 policies the Conservatives have brought in since 2010 sits at around £6.7billion per year, the suggestion is they will continue to build on this by adding another £6billion per year. The confusion however, is that nowhere in the manifesto does it state how, who they will target, what reforms they will put in place to achieve an extra £6billion etc.. so leaving us very much in the dark The closing words on this manifesto would be that nowhere in the manifesto is there any mention of employment rights, IR35 or job/ contract security which could be interpreted as... no change needed 😢 What are your thoughts on this? #conservatives #payroll #employment #election

Here's what small business owners must know about the recent announcements: *Employers' National Insurance: Starting April 2025, contributions will rise by 1.2 percentage points to 15%. The secondary threshold at which employers start paying National Insurance on a worker's salary will be cut from £9,100 a year to £5,000. *Employment Allowance: The allowance increases from £5,000 to £10,500, benefiting around 865,000 small businesses by eliminating their National Insurance liabilities. *Tax Thresholds & Minimum Wage: From April 2028, personal tax thresholds will adjust with inflation. Additionally, minimum wage for employees aged 21 and older rises to £12.21/hour in April 2025—an annual boost of approximately £1,400 for full-time workers. #SmallBusiness #BusinessOwners #NationalInsurance #EmploymentAllowance #TaxThresholds #MinimumWageIncrease #FinancialUpdates #UKEconomy

As I see it, this Labour government is looking to tax employers for employing people, which seems ludicrous when only yesterday they argued that their focus was growth. Seems to me that removing cost burdens on employers is a far better way to stimulate economic growth. more people in work, especially at the lower income levels, will improve 'tax take' and inject cash [fuel] into the economy whilst simultaneously reducing numbers on state benefits. National Insurance is a misnomer to obfuscate total 'tax take' from employers and employees. A radical overall of the tax system to simplify it and minimise loop-holes would be infinitely better than tinkering. Just look at the messaging: promises of not increasing income tax levels or National Insurance for working people and then, potentially, increasing employers taxes. Labour seem to correlate "employer" to 'over-paid, wealthy tax avoider' (or possibly cash cow). For the vast majority of small- and medium-business owners this couldn't be further from the truth. BBC News - PM does not rule out NI rise for employers https://lnkd.in/ehZmXFqJ

Catch up on the latest from HMRC. Every two months, HMRC publishes their Employer Bulletin. In such a rapidly changing environment of new government and legislation, it makes sense to stay on top of things. As we approach the latest release, catch up with all the essential business information, including: - PAYE Settlement Agreement calculations 2023 to 2024 - paying Class 1A National Insurance contributions - improving the Self-Serve Time to Pay service for PAYE and VAT customers - Self Assessment threshold change - Spotlight 64 - warning for employment agencies using umbrella companies - employment-related securities - end of year return deadline for employee share schemes. If you are confused or don’t have time to read this, talk to us to see how we can help you with tax matters. The link is in the comments #hmrc #employment #tax

🏢 British businesses are smarting after Finance Minister Rt Hon Rachel Reeves’ bumper tax-rising budget, with analysts warning that the measures could slow hiring and push up inflation. 💸 A widely anticipated hike of employer NI tax allowed Reeves to honour the Labour government’s manifesto pledge not to raise taxes on “working people,” while going some way in plugging what she has claimed is a £22 billion public funding “black hole.” 💼 But business and industry analysts — as well as the opposition Conservative party — have slammed the move as disingenuous, saying that it would ultimately hit employees by limiting companies’ ability to boost wages and hiring. That, they said, undermines the government’s pro-growth agenda. #UK #politics #economy #budget #tax #business #employers

The Chancellor’s Autumn Budget included important updates that will affect Employers' National Insurance (NI) liability, personal tax thresholds, and more. Here's a very quick look: 🔹 Employers' NI Rate is increasing from 13.8% to 15%. 🔹 Secondary Threshold is dropping from £9100/year to £5000/year – meaning smaller businesses may save, while larger ones may see rising costs. 🔹 Employment Allowance will increase to £10,500 for 2025–2026. These changes could have significant payroll and budgeting implications, so now’s the time to plan! ➡️ For a full breakdown, visit our online article, here: https://buff.ly/4eDsDwn #PayrollUpdates #AutumnBudget2024 #EmployersNI #PayrollPlanning

💼 Claiming employment expenses? HMRC has updated guidance on the evidence needed for PAYE and P87 claims. ✅ Keep receipts, invoices, and proof of payments ❌ Claims without evidence may be delayed or rejected. 🔗 Read the full guidance here https://ow.ly/VnK550Uwuig #TaxTips #HMRC #EmploymentExpenses

UK Small Businesses Face Challenges with New Worker Protections and Rising Costs: The government plans to improve workers' rights by ending zero-hour contracts and banning fire-and-rehire practices, which could affect small businesses relying on flexible workers. From April 2025, the National Living Wage will rise to £12.21 per hour, increasing payroll costs. Businesses in hospitality, retail, and leisure will also face higher costs as business rates relief drops from 75% to 40%. While these changes help workers, small businesses will need to adjust their hiring and manage higher expenses. #uktax #taxation #taxpayers #taxadvices #taxupdates #taxsavings #smallbusinessowners

I started employing people when I was 23 years old, and grew my business from four employees to about 60 in ten years. That was tough, but I grew as an entrepreneur and person at the same time. But running a business (big or small) is NOT the easy life and big money most people think. Employment law in Britain is a minefield and not cheap. Did you know employers pay a specific tax for the privilege of employing people? It's called Employers National Insurance Contribution, basically a payroll tax. It is therefore very worrying to read this report if entirely true (but with Sir Keir Starmer, you never know what he really stands for as he does change his mind quite a bit). We must have rights for employees and employers. This is a social contract that benefits the economy and society as a whole. However, some of what Labour are proposing here will cripple businesses and push many out of work. Holiday and increased sick pay entitlement from day one on the job? Who is going to pay it? If you think inflation is high and not enough people are in employment, let's see what happens under a Labour government with this crazy plan. I hope we don't! https://lnkd.in/e_GdzW9Y