Here’s our small business summary of the Autumn Statement with all the major tax, National Insurance and minimum wage changes explained for you.
Read on for a breakdown of the major business announcements from the Autumn Statement 2024.
A budget to fix the foundations of the economy
On 30 October 2024, Chancellor Rachel Reeves presented the Autumn Statement, aiming to stabilise the economy, support workers, improve the NHS and rebuild Britain.
The budget favours workers but will hit small UK businesses hardest. Key changes include a higher minimum wage, increased employer National Insurance contributions and revised Capital Gains Tax.
The budget emphasises short-term sacrifices for long-term stability to revitalise the economy.
Taxes will rise by £36 billion per year: £24 billion from employer NI increases, £6 billion from capital gains and inheritance tax changes, £4 billion from fraud prevention and £2 billion from other measures like a VAT increase on private school fees.
Let’s look at the big announcements and how they’re likely to affect small business
Key changes to tax and National Insurance:
Employers’ NI contributions to increase
Employers’ National Insurance (NI) is currently charged at 13.8% on income over £9,100 per employee. In April 2025, this rate will increase to 15% on income over £5,000 per employee.
For smaller employers, the additional costs will be reduced or eliminated. The Employment Allowance will increase from £5,000 to £10,500.
Get in touch with us to receive an estimate of the cost of uplift for your business
Capital Gains Tax (CGT) rates change
CGT is generally charged at 10% for gains within the basic rate tax band. For gains above that band, the rate is 20%.
From 30 October 2024, these rates will increase to 18% and 24%. The new rates will align with those currently charged on residential property disposals.
BADR rate to increase
Business Asset Disposal Relief (BADR) currently levies a charge of 10% on the first £1 million of capital gains from qualifying businesses.
From April 2025, this rate will increase to 14%. It will rise further to 18% from April 2026.
Amendments to Inheritance Tax (IHT)
The current inheritance tax (IHT) threshold is £325,000. For residences passed to direct descendants, the threshold is £500,000. This threshold will be extended until April 2030.
Starting in April 2027, pension pots and death benefits from pensions will be subject to IHT. Additionally, from April 2026, the first £1 million of agricultural property and business assets will be IHT-exempt.
Any excess over £1 million will also be exempt by 50%. However, the remainder will be taxed as part of the estate.
For AIM shares held for over two years, the exemption will be reduced to 50%. This will result in an effective IHT rate of 20% on those shares.
Other tax and duty changes include:
Stamp duty
The additional stamp duty on second homes will rise from 3% to 5% on 31 October 2024. Stamp duty on properties bought by companies will increase by 2%.
Business rates
A 40% business rates relief for retail, hospitality and leisure sectors will start in April 2025, capped at £110,000.
Electric vehicles
The 100% first-year allowance on new electric vehicles is extended by one year to 31 March 2026 for corporation tax and 5 April 2026 for income tax.
Fuel duty
Although widely expected to increase, fuel duty has remained frozen for a further year up to 22/03/2026.
Notable non-tax measures:
Minimum wage – minimum wages are increasing from April 2025:
| From | From | Increase | % | |
| 01/04/2024 | 01/04/2025 | |||
| 21 and over | £11.44 | £12.21 | £0.77 | 6.73% |
| 18-20 | £8.60 | £10.00 | £1.40 | 16.28% |
| Under 18 and apprentice | £6.40 | £7.55 | £1.15 | 17.97% |
Interest on late tax payments
Interest charged on late tax payments is going up by 1.5 percentage points to Bank Base Rate plus 4%.
Boost to HMRC compliance staffing
HMRC is adding 5,000 fraud detection staff by 2029/30. As well as 1,800 debt-management staff to focus on overdue taxes and non-compliance.
Non-dom tax regime to be replaced
The non-dom tax regime will be scrapped. It will be replaced with a residence-based scheme.
This new scheme will apply to new arrivals for the first four years of their UK tax residence. Details are yet to be announced.
Talk to us about how the Autumn Statement will affect your business.
Rachel Reeves said this is not a budget that the Government wants to repeat. Some tough measures have been needed to fill the £22 billion hole in the public purse. Additionally, to set the UK plc on a course that will drive the economy forward.
If you’re concerned about how the tax changes in the Autumn Statement will affect your business, our Tax Planning services can help ensure you’re prepared.
