The New Financial Year: A Fresh Start for Your Finances
Neonatal Care Leave And Pay
As we look ahead to the coming months, we’d like to bring your attention to a key update that will take effect from 6 April 2025:
the new Neonatal Care Leave and Pay regulations. This legislation was officially signed off by the House of Lords on the 18th of March.
These changes introduce a significant new entitlement for eligible employees, allowing them to take up to 12 weeks of neonatal leave if their baby requires hospital care following birth. In addition, statutory neonatal care pay will be available for qualifying individuals.
If you are an employer, you may also want to consider whether you will offer additional pay beyond the statutory requirement.
Get Ready for the New Financial Year: Key Changes You Need to Know!
Here are some important changes that are coming into play that will affect both businesses and employees. Here's a rundown of what to expect and how these changes could impact your planning...
National Living Wage on the Rise
Good news for employees! The National Living Wage will increase to £12.21 per hour starting April 2025. That's a 6.7% rise from the current rate of £11.44. This is the minimum wage for UK workers aged 21 and over, so if you're an employer, it's time to make sure your payroll is updated.
For workers aged 18 to 20, the hourly wage will increase from £8.60 to £10.00, reflecting a 16.3% increase. Meanwhile, the hourly wage for those aged 16 to 17, as well as apprentices, will rise from £6.40 to £7.55, marking an 18% increase.
Employer National Insurance Contributions
From 6 April 2025, Employer National Insurance contributions will rise to 15%, up from the current rate of 13.8%. Plus, the threshold at which employers are required to start paying will drop significantly—from £9,100 to £5,000 annually. This could have a real impact on your payroll costs, so it’s important to plan ahead.
Statutory Pay Increases
In addition to wages, there will be increases in statutory pay rates, including those for maternity, paternity, sick leave, and other statutory sick pay. Make sure to review these changes to ensure you’re compliant and offering the right support to your employees.
Also, keep searching and applying while waiting for responses. Spring hiring moves fast, and new job postings appear daily. Stay consistent, follow up, and take the initiative to connect with employers, you never know which opportunity will lead to success!
Business Rates Relief
For businesses in the retail, hospitality, and leisure sectors, there will be an extension of business rates relief. However, the discount will decrease from 75% to 40%, which could lead to a notable increase in rates bills for some businesses in England.
Overview
These changes mark a significant shift in the financial landscape, impacting businesses in a variety of ways.
Now is the ideal time to take a step back and carefully review your business’s payroll, tax planning, and overall financial strategy. With rising wages, increased National Insurance contributions, and changes in business rates relief, it's important to ensure you're fully prepared for the financial impact these adjustments may have.
Revisiting your payroll processes, budgeting for these changes, and ensuring compliance with updated regulations will help keep your operations running smoothly.
Additionally, this is an excellent opportunity to reassess your tax strategy, identify potential savings, and plan for future growth.
By taking a proactive approach now, you can avoid any unexpected financial surprises later in the year. .