There are just a couple of weeks left of 2024 and it’s been another eventful year. It’s been one of change but then we’ve got used to that recently so perhaps that’s no surprise. So just as it’s nearly time for presents, turkey and Father Christmas, it’s time for our annual review of the year blog.
Change at the top
One of the biggest developments this year in terms of impact on the economy, taxation and payroll is the results of the general election in July and the change in government. Shortly after parliament returned, the King’s Speech outlined some of the legislation the new government is planning which includes a new Employment Rights Bill and a Skills England Bill. You can read more about the speech here.
National Insurance
2024 is another year where National Insurance features in our review of the year. In January, the rate paid by workers fell by 2 percentage points to 10% and then in April it was reduced again to 8% which meant everyone’s take home pay increased a little.
Then at the end of October, the new Chancellor of the Exchequer delivered her first budget which included an announcement that the rate of National Insurance paid by employers will increase to 15% in April 2025 and will be payable on all salaries above £5,000. So while that won’t make a difference to employees’ pay packets, it will add to the cost of employing staff for employers.
Our blog reviewing all the announcements in October’s budget can be found here.
Inflation and interest rates
The cost of living crisis is still with us, but the rate of inflation has been falling this year and there are even some reports that the cost of this year’s Christmas dinner will be lower than last year.
This has meant that The Bank of England has felt able to start reducing interest rates, beginning with a fall of 0.25% in August and a further 0.25% in November.
The Office of National Statistics has just reported that pay rates rose by 5.2% between August and October which suggest that wages are starting to catch up with increased prices. It will be interesting to see how all these interconnected factors play out in 2025.
Pixie Payroll’s year
It’s been another really busy year at Pixie Payroll with new clients joining us and fellow director Phil now working full time in the business. We enjoyed a brilliant summer of cricket thanks to our continued sponsorship of Mullion Cricket Club and player Mathew Davies who was the top wicket taker with 28 wickets – congratulations Mathew! We still have the December payrolls to process but after that, we’ll be enjoying a well-earned break and some family time. Our office will close at 1pm on Tuesday 24th December and will reopen at 9am on Monday 6th January. We’d like to wish you all a very Merry Christmas and Happy New Year.