HR Heartbeat: Advice for business owners on the Autumn Budget 2024, payrolling taxable benefits in kind, and…

Welcome to HR Heartbeat, where we give you a rundown of the week’s top employment law stories. Stay on the pulse of current trends impacting your business, plus get up-to-the-minute commentaries on all things HR and legal.

What does the Autumn Budget 2024 mean for small business owners?

Described as the ‘biggest tax increase in a generation’, on Wednesday 30th October 2024, Labour announced their first budget in 14 years. Several key pay and tax changes are on the way for business owners. Including increases to the National Minimum Wage, the National Living Wage, and Employer National Insurance contributions.  

Here’s a rundown of the key changes expected in April 2025:

• The National Living Wage (21 and over) will increase from £11.44 to £12.21 

• The National Minimum Wage (18- to 20-year-olds) will increase from £8.60 to £10.00

• Employer National Insurance contributions will increase from 1.2% to 15%

• £40 million will be invested to transform the apprenticeship levy

• Carer’s allowance will rise from £151 to £195 a week, meaning a higher number of carers will be eligible for Carer’s Allowance

• The ‘Get Britain Working’ scheme will get a £240 million investment in an attempt to help employees with disabilities or health conditions with their careers

So, how will these changes impact your business? Well, for SMEs it’s a bit of a mixed bag...

Payroll-related changes like Employer National Insurance contributions (NICs) and minimum wage increases will add to operational pressures, while some of the sector-specific support, especially for technology and sustainability, encourages innovation and growth.

HR departments will play a pivotal role helping businesses navigate these challenges by focusing on automation, flexible benefits, and workforce upskilling.

As a business owner, it’s advisable you prepare by (1) familiarising yourself with what’s changing, (2) making sure your payroll processes are accurate and compliant, and (3) seeking expert advice to avoid getting new rates wrong and facing legal penalties.

You can read more advice in our latest blog: What does the Autumn Budget 2024 mean for small business owners?

Or for instant answers on over 11,000 HR and health & safety questions, feel free to ask our superfast AI tool Bright Brainbox:

• ‘What was included in the budget 2024 from an HR perspective?’  

• ‘What did the Chancellor announce in the Budget 2024 that affects HR?’

• Has the new national living wage for 2024 been confirmed?

Payrolling taxable benefits in kind to be mandatory for all employers by April 2026

Starting 6 April 2026, payrolling taxable benefits in kind will be mandatory for all employers.

The annual P11d reporting deadline can often ‘creep up’ on employers, leaving them scrambling to collate all the benefits provided over the year and risking costly mistakes with HMRC.

You can register online via the UK government’s online payrolling benefits and expenses online service.

By payrolling your benefits, you can:

• Avoid costly mistakes with HMRC

• Remove the need for time-consuming and costly annual P11d admin

• Reduces the risk of errors and penalties from HMRC

• Simplify the process by deducting liabilities each pay period

The government has also confirmed plans to mandate the real-time reporting of benefits in kind via payroll software starting on the same date.

HMRC said this phased approach will give employers time to adapt to the changes and gradually integrate these elements. But the process can be made even more seamless with the right payroll software provider.

To get the key information you need about Benefits in Kind, read our full article:  A guide to benefits in kind: What employers need to know

Stop Halloween absence and lateness from haunting your team!

Halloween is here and this year the spooky fun lands right in the middle of the working week. Fun right? Well, employers beware! Our attendance data shows there was a hauntingly huge 133% rise in lateness the day after Halloween last year. Worse still, sickness rates spiked by 120%.

If this doesn’t send a shiver down the spines of HR teams and Managers, then we don’t know what will!  You can’t predict when employees get sick or when trains may run late. But with BrightHR on your side, you can stay on top of absence management, leave requests, doctors appointments and more.

Discover how BrightHR’s streamlined absence management software keeps your team on track.

And that’s a wrap. Tune in next week for more headlines to make sure you stay ahead of major employment law changes!