Budget 2017 Key Points for Employers

The Autumn Budget 2017 has highlighted a number of key points that Employers need to consider for their organisations and people.

Wages

The Government has confirmed that it has accepted the recommendations of the Low Pay Commission (LPC) for increases to the national living wage (NLW) and the national minimum wage (NMW). Accordingly, from April 2018 the Government will increase the NLW, which applies to workers aged 25 and over, by 4.4% from £7.50 to £7.83. The LPC has estimated that this will benefit over 2 million workers. At the same time, the NMW rates will be increased as follows:

  • from £7.05 to £7.38 for 21 to 24 year olds;
  • from £5.60 to £5.90 for 18 to 20 year olds;
  • from £4.05 to £4.20 for 16 and 17 year olds; and
  • from £3.50 to £3.70 for apprentices.

Taxation

In accordance with its commitment to raise the personal allowance (PA) to £12,500 and the higher rate threshold (HRT) to £50,000 by 2020, the Government has announced that in the 2018/19 tax year the PA and HRT will be increased to £11,850 and £46,350 respectively. The Government has also announced that, with effect from April 2018, there will be no benefit in kind charges on electricity that employers provide to charge employees’ electric vehicles. The report further details a number of changes the Government will make to the taxation of employee expenses following a call for evidence that was published in March 2017.

Employment Status

The Government has stated that it will publish a discussion paper as part of its response to the Taylor review of employment practices, which will explore the case and options for longer-term reform to make employment status tests for both employment rights and tax clearer. It has acknowledged that this is an important and complex issue, and it will therefore work with stakeholders to ensure that any potential changes are considered carefully.

Source: UK Government

The Chancellor of the Exchequer delivered his 2017 Autumn Budget speech to the House of Commons on Wednesday 22 November. On the same day, the full Budget report was published by the Government.

Please contact us for help with understanding and implementing any of the key points above.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *