Following the Autumn Budget delivered by The Chancellor of the Exchequer on 30 October 2024, there were three main changes that will impact hairdressing businesses.
All businesses are different and there are other changes in the budget that may also impact your business. The full budget can be found here and we also recommend receiving financial advice if you have any particular concerns.
The over-21 National Living Wage Rate is rising by 7% to £12.21 and the Apprentice National Minimum Wage is rising 18% to £7.55. It is important to review the salaries for all your employees to ensure that they are are all receiving the minimum rate applicable to their age.
More information can be found on gov.uk
https://www.gov.uk/national-minimum-wage-rates
in 2024/25 the Small Business Rates relief was 70%. From 1 April 2025 the rates relied discount is reducing to 40% – effectively doubling the Rates bill for retail units.
From 1 April 2025 employers with PAYE scheme will pay a different amount of Employer NICs. For some micro businesses (with approximately 4 employees or less) their Employer National Insurance Contributions could be less or see a modest increase. Smaller businesses with five employees or more, will pay a larger Employer National Insurance Contribution.
It is important to work out the impact for your business, we recommend speaking with your accountant to calculate the change or if you are a NHBF member downloading their budget calculator.
The key changes are: