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I expect you are all waiting to hear about this – just in case there was something interesting in the autumn statement this year.  Well, there was… 

From 1st April 2017 there are increases in the national living wage for those aged 25+ increases by just over 4% from £7.20 to £7.50.

There were also changes in the minimum hourly wage rates.  The standard adult minimum wage rate (for ages 21-24) increases from £6.95 to £7.05, the development rate for those aged 18 – 20 increases from £5.55 to £5.60, the young workers rate (age 16 – 17) from £4.00 to £4.05 and the apprentice rate from £3.40 to £3.50.

The daily amount of the minimum wage that employers can offset against accommodation costs increases from £6.00 to £6.40.

In case you are thinking (as an employer) that you don’t need to pay minimum or living wage rates, think again.  A further £4.3 million will be invested by the Government in minimum wage enforcement.  This includes ‘naming and shaming’ and heavy fines for companies plus tax demands for arrears.

 

The tax treatment of payments made when employment is terminated will also change. For the first £30,000 there is an exemption from income tax andNI contributions, and this remains in place. However, from April 2018, payments in excess of £30,000 will be subject to employer’s NI contributions as well as income tax.

There are also changes in salary sacrifice schemes, some of which are due to be phased out next year. Schemes regarding pensions, childcare, cycle to work schemes and ultra-low emission vehicles won’t be phased out next year.

There was a lot more in the autumn statement.  These are the main things that have an impact on the world of employment. Some good things, some bad, and some that won’t make a huge difference.  Of course, if you require advice on any of these items why not give us a call.

 

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