The Worker Protection Act: a brief guide for employers<\/span><\/a>\n <\/p>\nAdditionally, the government will provide a further \u00a340 million to support up to 10,000 more young people to access new construction Foundation Apprenticeships, enabling more young people to enter the industry and address skills shortages.<\/p>\n
Reminder: changes coming in April 2025<\/h3>\n
Though the Chancellor did not mention the new policies and taxes taking effect next week in her speech, they are significant to businesses’ financial outlook. Here are the five key changes to keep in mind:<\/p>\n
\n- Employer National Insurance contributions (NICs) are increasing from 13.8% to 15%.<\/li>\n
- Employment Allowance is rising from \u00a35,000 to \u00a310,500.<\/li>\n
- The National Living Wage (NLW) is rising from \u00a311.44 to \u00a312.21 per hour for employees over 21. The National Minimum Wage (NMW) for employees between 18 and 20 will rise from \u00a38.60 to \u00a310.00 per hour. The apprentice wage is also increasing from \u00a36.40 to \u00a37.55 per hour.<\/li>\n
- Late payment penalties for VAT and income tax Self Assessment will increase from 2% to 3% at 15 days, 2% to 3% at 30 days, and 4% to 10% from day 31.<\/li>\n
- Capital Gains Tax on the sale of shares will increase from 20% to 24%, unless the sale of shares qualifies for Business Asset Disposal Relief. Business Asset Disposal Relief is increasing from 10% to 14% on 6 April 2025, and then again to 18% from 6 April 2026.<\/span><\/li>\n<\/ol>\n
For more details on what\u2019s changing for the 2025\/26 tax year, read our blog ‘2025-26 tax year \u2013 what UK business owners can expect<\/a>‘.<\/p>\nUK businesses\u2019 sentiment on the Spring Statement 2025<\/h3>\n
Many entrepreneurs had hoped the Chancellor would signal more support towards businesses and put their needs at the core of the country\u2019s economic recovery.<\/p>\n
SMEs are about to deal with significant rises in costs this April due to employers\u2019 National Insurance contributions rising by 1.2% and increases in statutory wage rates. Dext<\/a> research shows that as a result, a third of business leaders are losing sleep over concerns about affording their payroll costs, and the Companies House register shrank between October and December 2024 for the first time since quarterly records began in 2012.<\/p>\nGraeme Donnelly, founder and CEO of 1st Formations, provided his analysis of today\u2019s events.<\/p>\n
This Spring Statement fell short of what businesses need. Rather than laying the groundwork for growth, it offered little in the way of direct investment. SMEs drive the UK economy, generating over \u00a32.4 trillion in turnover and employing 60% of the private sector workforce. Yet, the government is not prioritising them. Since the Autumn Statement, 24% of small businesses have cancelled hiring plans<\/a>, and 16% have been forced to cut employee hours. If the UK economy is to recover and grow, SMEs need better, more targeted support.<\/p><\/blockquote>\nAlthough businesses were not at the centre of this Spring Statement, we hope a positive economic outlook will benefit the UK business landscape over the longer term.<\/p>\n
Stay tuned for our coverage of the Autumn Budget in October, as we anticipate there will be more substantial tax and policy changes.<\/p>\n
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