ACS is encouraging retailers to make sure their business is ready for changes coming into force in April as a result of the Autumn Budget, which will increase costs for many, but for some of the smallest retailers may result in some savings.

ACS has created an easy to follow guide to the changes and what they mean for you, which is available to download here.

Employer NICs

The National Insurance Rate paid by employers currently stands at 13.8%. This will increase to 15% from April, with the point at which employers beginning to pay NICs reducing from £9,100 a year to £5,000 a year.

For example, in a typical store (nine colleagues, 196 total paid hours per week), the change in NICs will result in an increase to the business’ annual Employer NICs bill from £8,170 per year to around £12,606 per year before claiming Employment Allowance.

You can find more information here: Employer National Insurance Rates

Reduction in Business Rates Relief

Business rates bills are also set to increase due to the reduction in Retail, Hospitality and Leisure (RHL) relief, which will fall from 75% to 40%.

For example, a store with a rateable value of £25,000 which applies the small business rate multiplier (x0.499) and the RHL reduction (40%) will now face a payable rate of £7,485, more than double what it was in 2024.

Businesses in Wales will continue to receive 40% RHL relief, and Scotland currently has no relief for retail businesses.

You can find more information here: https://www.gov.uk/find-business-rates

Increases to National Living Wage and National Minimum Wage

Retailers should also be prepared for increases to the National Living Wage (NLW) and National Minimum Wage (NMW) rates.

• For employees who are over the age of 21, NLW rates will rise from £11.44 to £12.21 an hour
• For employees aged 18-20, the NMW will rise from £8.60 to £10.00 an hour
• For under 18s and apprentices, the NMW will rise from £6.40 to £7.55 an hour.

You can find more information here: https://www.gov.uk/national-minimum-wage-rates

ACS chief executive James Lowman said: “The convenience sector has shown its resilience over the past year, continuing to grow despite the challenges faced from operational costs and retail crime. However, the increases introduced by the Budget will only ramp up the pressure on local shops, making it difficult for retailers to make a profit so they can grow and invest in their businesses.”

Employment Allowance: How to Claim

Make sure to claim your annual employment allowance, which is rising from £5,000 to £10,500. This is a vital way to reduce your overall Employer National Insurance bill. If you haven’t already, you can also claim the Employment Allowance for the past four years.

You can find out how to claim your employment allowance here: https://www.gov.uk/claim-employment-allowance/how-to-claim