Chancellor Phillip Hammond has delivered the latest Autumn statement recently highlighting the state of the current UK economy.
But as employers and HR professionals, what are the points you should be aware of and how will they affect your employees and business?
Here’s our five minute round-up of what the 2016 Autumn statement means for employers.
Regulations surrounding salary sacrifice benefits will be altered so that particular employee benefits, such as mobile phone contracts, health checks and gym memberships, will lose their tax relief status.
However, certain schemes such as pensions, childcare, cycle to work, and low emission car schemes will be exempt. The chancellor described salary sacrifice schemes as “unfair”, and said the new rules will come into force in April 2017. “Employers and employees will pay the same tax that everyone else does,” he said.
National Living Wage rises
The National Living Wage, which applies to those aged over 25, is set to rise to £7.50 from April next year. “This is an extra £500 per year for a full-time worker,” Hammond said.
Originally proposed by previous chancellor George Osborne, the wage is now likely not expected to rise to £9 per hour by 2020, and falls short of some predictions of what it may have reached by 2017.
Personal allowance rises
The chancellor confirmed that the tax-free personal allowance will rise to £11,500 next year, and that it will continue to rise to £12,500 by the end of this parliament.
After that the incumbent chancellor will judge further increases. “This will provide a massive boost to low- and middle-income earners,” Hammond said.
For more information on how the Autumn statement might affect your workforce, speak to the Appointments team today on 01782 338787 for free advice and support.