Just like the leaves changing colour and glut of cut priced pumpkins in the shops, the Autumn budget is as true a sign as any of the movement into autumn in the UK. And this year, Chancellor Rishi Sunak had some difficult decisions to make in order to regain ground after the record-breaking emergency financial measures he put in place during the pandemic.
In this post, we’ll outline some of the key highlights of the budget and discuss the impact they might have on your business goals for the next year.
The National Living Wage is the obligatory minimum wage payable to people over the age of 23. It is based on the cost of living and is designed to ensure that all workers can maintain a minimum standard of living.
In this budget, the National Living Wage has been increased by 6.6% to £9.50 an hour, as recommended by the Low Pay Commission. This increase amounts to a rise of around £1000 per year for someone working a 35-hour week.
While this rise is great news for workers, it might be a worrying blow for small businesses who are already struggling to meet their labour costs. The best way to mitigate the fallout from this hike is to ensure that you have properly planned for your payroll. The JMK Forecaster tool can help you plan for your payroll needs, even in this uncertain time. Talk to us today about how we can help.
In a bid to “create stronger high streets”, the chancellor announced that there will be a 50% discount on business rates for businesses in the retail, leisure and hospitality industry.
The reduction will be in effect in 2022-2023 and can be claimed up to £110,000.
This tax cut is worth around £1.7bn for pubs, music venues, theatres, gyms, etc, essentially those companies which were among the hardest hit by the pandemic.
But even if you’re not operating in one of those industries, you’re still in for a slice of the action. It was also announced that there will be no increase in rates for any companies. In effect, this means a 3% reduction on rates bills across the board.
There will be a green investment relief to encourage businesses to adopt green technologies that will contribute towards the country’s goal of net zero carbon. The business rates improvement relief will also allow businesses to pay no extra business rates on improvements for 12 months. Both changes will take effect in 2023.
Couriers, delivery drivers and any company that clocks up a lot of miles will no doubt be grateful for the announcement that the Chancellor has scrapped plans to increase fuel duty.
The tax paid on fuel will be frozen for the next five years, which will go some way to offset the rising cost of fuel which is currently at an all time high.
As usual, the Budget 2021 has been a mixed bag and the true effects will take a while to be felt by all.
Remember that JMK is here to help you meet your business goals, so do get in touch if you have any questions regarding how the budget might affect you, and we will do everything we can to help.
We know every agency is different in some shape or form, even if only by a little, but important bit. Combining our knowledge and experience of multiple sectors enables JMK to support you all from recruiters and payroll, through to finance, compliance and management.
With JMK as your trusted partner, even the smallest team can process the largest payroll, regardless of payroll type.