The Chancellor has announced a few things that all employers will need to plan for/ accommodate in the next year or so:
- National Living Wage will increase from £7.20 to £7.50 per hour from April 2017. This is apparently a pay rise worth over £500 a year to a full-time worker," NLW applies for workers aged over 25.
- Employee benefits - tax savings on salary sacrifice and benefits in kind are to stop, with exceptions for ultra-low emission cars, pensions, childcare (childcare vouchers) and cycling (cycle to work scheme)
- Employee and employer National Insurance thresholds will be equalised at £157 per week from April 2017 (increased cost to an employer of just over £7 per employee per year).
- £13 million funding Charlie Mayfield’s (Chairman of John Lewis Partnership) work on boosting management skills across the UK.
Corporation tax will be reduced to 17% as planned from 20% so that should offset some of the increased costs / lost tax savings - where the employer operates as limited company.
Further information will follow nearer the time of implementation and as and when further details are released by the government.
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