Autumn Budget Impact

Today the Government delivered the Autumn Budget 2024 which contains significant tax rises.  

Here are the key points that matter to equestrian businesses: 

1. Tax rises on NI Employers going up by 1.2% to 15% from April 2025
2. Reduction in the level at which employers will start paying NI on employees' salary from £9.1k to £5k  (this is a massive hit for employers!)
3. From 2028-29 personal tax thresholds will be uprated in line with inflation once again 
4. The amount employers can claim back from their National Insurance bill is increased from £5,000 to £10,500 (helping small businesses)
5.  A new crackdown on tax avoidance and fraud. An increase in the number of HMRC investigators and an investment in the process.
6. The minimum wage will rise significantly on the 1st April 2025: 

• The minimum wage for 21 and over year olds, known officially as the National Living Wage, will rise by 6.7%, from £11.44 to £12.21. 
• For 18 to 20-year-olds, the minimum wage will rise from £8.60 to £10.00. (an increase of 16.3%!)
• Apprentices will get the biggest pay bump, from £6.40 to £7.55 an hour.
• Accommodation Offset will rise from £10.66 per day (£74.62 per week)

So what does this actually mean for the increase of wage bills within a yard? We have calculated the following scenarios:

*NB these hours are based on repeated surveys that identify the hours grooms work. Remember, the NMW/NLW must be paid for every hour worked.

54 hour week (6 days per week, 07.30 - 17.30 with 1 hour unpaid lunch break) 

• 21 and over    Current =  £32,123     New = £34,285      Rise= £2,162 
• 18 -20              Current =  £24,148     New = £28,080      Rise= £3,931
• Apprentice      Current = £17,971      New = £21,200      Rise =£3,229
  
  

45 hour week (5 days per week, 07.30 - 17.30 with 1 hour unpaid lunch break) 

• 21 and over    Current =  £26,769     New = £28,571      Rise= £1,801
• 18 -20              Current =  £20,124     New = £23,400      Rise= £3,276
• Apprentice      Current = £14,976      New = £17,667      Rise =£2,691

The impact on a business then needs to be multiplied, so for example, the rises announced will on 1st April 2025 see an annual  increase of: 

Yard with 3 staff who are 21 years and older  =  £9,322
Yard of 5 staff (2x21 and over, 2x 18 -20 and 1 apprentice = £15,415
Yard of 10 staff (4x21 and over, 4 x 18-20 and 2 apprentice = £30,831

It must also be noted that there is also an increase in Pension contributions as a result of the rises and the NI insurance rates. All of which is going to have implications for equestrian employers. 

Read the Autumn Budget 2024 

Join the EEA