Prepare for the changes taking effect this year from the Autumn 2024 Budget. From rising NICs and wage increases to tax adjustments, explore expert tips to help security professionals and business owners budget effectively and stay ahead in 2025.

With a new year upon us, planning for the year ahead has become a focus for many business owners and security professionals. Whether you run a self-employed operation, manage a small team, or oversee a larger security firm, budgeting is an effective way to navigate upcoming changes. With the Autumn Budget 2024 introducing new financial measures, it’s vital to understand how these changes could affect your cash flow, taxes, and overall strategy.

Here’s a breakdown of key changes in the Autumn Budget and budgeting tips to help you stay ahead in 2025.

The Autumn Budget 2024: Key Changes Impacting Your Business

1. Employers’ National Insurance (NICs)

From April 2025 there will be an increase in Employers’ National Insurance (NICs)

• Employer NICs will rise from 8% to 15%.
• The secondary threshold, which is the point at which employers begin paying NICs, will drop from £9,100 to £5,000.

This will have a smaller impact on security businesses with fewer than five full-time employees on the National Living Wage. However, it’s crucial to understand how this could affect your payroll costs and cash flow.

The good news: Smaller businesses will benefit from an increased Employment Allowance. This will rise from £5,000 to £10,500, and the previous £100,000 eligibility threshold will be removed—providing valuable relief for smaller employers.

2. National Living and Minimum Wage Increases

• Will increase to £12.21 per hour for employees aged 21 and above.
• Apprentices and younger workers will also see an increase in rates.

Combined with rising NICs, this change could significantly impact security professionals who rely on hourly workers or small teams. Business owners should factor these payroll increases into their budgeting to avoid cash flow issues.

3. Capital Gains Tax (CGT) Changes

   From 2025, CGT rates will increase:

• The lower rate will rise to 18%
• The higher rate will rise to 24%

However, Business Asset Disposal Relief remains available for those selling business assets, but this will increase from 10% to 14% in April 2025 and further to 18% by 2026/27.

Tip for security business owners: If you’re considering selling business assets, you may save significantly by acting before April 2025.

4. Corporate Tax Rate Stability

• The corporate tax rate will remain at 25% for the duration of Parliament.

2025 Budgeting Tips for Security Professionals and Business Owners

1. Break Down the Budget’s Impact on Your Business

Don’t get lost in the headlines—focus on how the changes apply directly to your business. For example, if you’re a self-employed security professional or run a small team, the Employment Allowance increase could help offset the impact of rising NICs.

2. Consider Selling Business Assets Before April 2025

With CGT rates set to rise and Business Asset Disposal Relief increasing from 10% to 14%, it may be worth reviewing your asset plans now. Selling before April 2025 could save you significant tax.

3. Plan for Increased Wage and NIC Costs

If you rely on employees, prepare for the combined effect of higher NICs and wage increases. Security businesses and contractors should evaluate their payroll processes and consider adjustments to pricing or contracts to account for rising costs.

4. Review Your Business’s Seasonal Cash Flow

Many security professionals and business owners experience seasonal variations in demand—for example, increased work during events or holidays. Plan for quieter months by maintaining a strong cash reserve to cover expenses and ensure operational stability.

5. Optimise Your Profit Margins

Not all services in the security sector contribute equally to your bottom line. Assess your profit margins for different contracts or service lines to prioritise the most profitable areas. Consider focusing resources on higher-value services like close protection, risk assessments, or specialised security work.

6. Explore Research and Development (R&D) Relief

If you’re investing in innovation—such as improving security technology, systems, or training—the continued availability of R&D relief could offer valuable tax savings. Including R&D in your 2025 budget can improve your services and keep you competitive.

Effective budgeting isn’t just about numbers; it’s about understanding how external changes and internal operations align. For security professionals and business owners, careful planning will be essential to navigate the increased wage costs, rising NICs, and potential tax changes while maintaining profitability and growth.

If you need help understanding how these changes will impact your business, Whittaker & Co. is here to assist. Contact us today for tailored advice that works for you.

Autumn Budget 2024 — Overview of tax legislation and rates (OOTLAR) – GOV.UK

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