What the UK Budget 2024 Means for Employers: Changes in National Insurance and Tax Thresholds

The UK Budget 2024 introduces substantial updates affecting employers’ obligations, including adjustments to National Insurance contributions and changes in tax thresholds. For businesses, these updates mean that payroll costs and operational budgets will be directly impacted. The increase in minimum wage and adjustments to employer National Insurance contributions will affect both large and small businesses, especially those in sectors heavily reliant on labour.
These payroll increases necessitate proactive financial planning for businesses seeking to maintain profitability while complying with the new rates. For smaller businesses, managing these increased costs could require adjustments in staffing budgets, possibly affecting hiring plans or wage structures. Corporations and SMEs alike should revisit their budgets to incorporate these higher expenses, ensuring they are prepared to meet all obligations without disrupting cash flow.

For multinational businesses, changes to skilled worker visa requirements also present new challenges. As the government continues to balance domestic labour market needs with skilled immigration, companies must ensure compliance with the latest immigration requirements, particularly those concerning minimum salary thresholds. GSC Solicitors’ Employment Law team advises clients on both domestic payroll compliance and the complexities of skilled worker sponsorships, offering tailored strategies that align with the latest regulatory requirements.

Why GSC Can Help:

Our Employment Law team is available to help businesses of all sizes navigate the complexities of payroll planning, wage adjustments, and immigration compliance. Reach out to GSC Solicitors to learn how to mitigate the impact of budget changes on your workforce management and legal obligations.