In the UK budget on Wednesday 30 October 2024, where Chancellor Rachel Reeves outlined the first labour budget in 14 years, she announced an increase in national insurance payments for employers. Whilst this may have been a tactical move not to directly increase tax on individuals, there is no question that this decision will have a significant impact on marketing and creative agency budgets.
With this in mind, we have created a budget calculator to help our clients understand the risk this decision will have as we move into the new financial year.
What is the National Insurance Calculator?
The National Insurance Calculator is a tool we have created to help creative and marketing agencies understand the implications of the tax changes and how it will impact their business over the next year. It will provide a guide on total and percentage increases on the extra cost will have to your business.
Why is this important?
It is important for our clients to understand the impact the changes in the budget will have on their agency finances so they can prepare accordingly. Budgeting for 2025 is underway for many agencies and planning ahead is key. It is important to bring in these increased costs within your budget for next year, this will allow you to evaluate staffing plans and decisions over your rates with clients and how you price upcoming work.
How does this help our clients?
We aim to continue to help our clients understand their finances, cash flow position and be prepared for any unforeseen situations. By creating this simple tool, we hope it supports our clients in making sustainable decisions for growth.
Click HERE to download the tool.
When you click on the above link, we have included a set of instructions that should help you to complete this fairly simply and easily. Don’t forget to make your own copy and save it to your desktop. When using this tool, we encourage you to list each of your employee’s wages but, please note we encourage you not to enter any personal data eg: just note employee 1, 2, 3, etc and their wage value.
If you would like some support navigating the impact of these changes, please get in touch to see how the CFO for Growth team can help.
