Budget: Is the minimum wage rise a problem for you?

A planned rise in labour costs announced in the Budget has been branded a “major setback” for the construction industry.

After weeks of speculation, Chancellor Rachel Reeves was due to present the Autumn Budget to the House of Commons at lunchtime. Measures already signposted include an increase to the minimum wage, the introduction of a mileage tax on electric vehicles, and a council tax surcharge on homes valued at more than £2 million.

Reeves is also expected to confirm that income tax thresholds will remain frozen until April 2031, a move that will push more people into higher tax bands as wages increase.

As part of the wage measures, Reeves was set to announce that the National Living Wage for those aged 21 and over will rise by 4.1 per cent to £12.71 an hour. Workers aged 18 to 20 are expected to receive an 8.5 per cent increase, raising their rate to £10.85 an hour.

For 16 to 17-year-olds, as well as apprentices, the minimum wage will increase by 6 per cent to £8 an hour.

All of the new wage rates will come into effect from April next year.

How we can help you

Have you considered using self-employed operatives to reduce the impending increase to your PAYE bill? If so, please give us a call to discuss the transition of moving your employees to a self-employed status compliantly.

Please contact us on 0330 052 5200 or email cis@mineralpayroll.com