Yesterday the Chancellor of the Exchequer delivered his Autumn Budget for 2017 and this newsflash sets out the key implications for employers and employees.
The Budget has the following implications in relation to employees.
The Government accepted the recommendations from the Low Pay Commission on the National Living Wage and the National Minimum Wage and accordingly from April 2018:
The Government announced that it will be publishing a discussion paper, as part of its response to the Taylor Review, which will explore the options for long-term reform to make employment status tests for employment rights and tax clearer.
In the 2018/19 tax year the personal allowance will be increased to £11,850 and the higher rate threshold will be increased to £46,350.
The Government also announced that from April 2018 there will be no benefit in kind charges on electricity that employers provide to employees to charge their electric vehicles.
Paula Bailey comments: "The key change for employers from this Budget is the increase to the National Minimum Wage rates and in particular the National Living Wage which increases by 4.4%. Employers will therefore need to make sure appropriate pay adjustments are made in April next year."