Here is a snap shot of the autumn statement in October 2024. here is a few points from the statement, the main one is a change to how National insurance will work for companies

National insurance:

This is split into two parts for workers, the part paid by the employee and the part by the employer. The Employee part was reduced by the last government from 12% to 8%. The Employer amount is being increased by the current government from 13.8% to 15%. This 1.2% increase is around a £300 increase on average salaries we tend to work on.

For our hospitality clients, this is for the wages, you do not pay NI on Tips or service charge.

The government are also reducing the threshold you pay the company NI from £9100 to £5000

Fuel duty

Good news for sales managers we work with, who are on the road. Fuel duty will be frozen for another year

 Drinks

Four our hospitality clients and drink clients, a small change to duty.

Alcohol duty rates on non-draught drinks to increase in line with RPI from February

Draught alcohol duty cut by 1.7% – 1p off a pint, this means you will make a extra 1p per pint brining the average margin up from 12p to 13p. This is not enough but it is a step in the right direction for hospitality.

National minimum wage (living wage)

A boost to the national living wage, with the minimum someone aged 21 and over can be paid increasing by 6.7% to £12.21 an hour

The national minimum wage, for 16 to 20-year-olds, will also increase – by 16.3% to £10 an hour.

Employment allowance

This is the allowance small business gets to help with employer NI costs. This is going up from £5k to £10k. This means for companies who meet the criteria, will get the 1st 4 employees they employ at minimum living wage at no cost for employer NI.

HtE Recruitment News & Insights

This news and insights page has been written for HtE Recruitment and edited by Rick. HtE Recruitment take no responsibility for this post.