The Autumn Statement, November 2016 (employment perspective)
Philip Hammond's Autumn Statement contained a raft of measures with ramifications for those dealing with employment issues. There have been some fairly gloomy reports in the press including "Worker prospects dreadful, says the IFS" (Institute for Fiscal Studies) (See, for example, this BBC report) but there is some good news too. Here are the highlights:
- The National Living Wage to increase from £7.20 to £7.50 in April 2017 (meaning a £500 increase to full time workers)
- The tax free personal allowance will increase to £12,500 by the end of the current Parliament and will then continue to rise with inflation.
- There are various changes to employee benefits. Salary sacrifice schemes were a particular target - regarded as unfair in that they mean some pay more for goods than those with the benefit of such schemes. From April 2017, most such schemes will be taxed in the same way as cash income. Some schemes will be exempt including pensions, pensions advice and childcare as well as environmentally friendly schemes such as Cycle to Work.
- Tax relief on Employee Shareholder Shares (ESS) is being withdrawn from those agreements entered into on or from 1 December 2016.
- The government is retaining the exemption from income tax and National Insurance (NI) for termination payments up to the current threshold of £30,000. However, from April 2018, employer NI contributions will be payable on payments above £30,000.
If you are affected by any of the above, contact Susan Mayall on 0161 684 6948 for guidance or make an enquiry.
- A report from Richard Eastwood on some of the key points including "the good, the bad and the so-so": Is the Autumn Statement Christmas come early or not?
- The Autumn Statement (commercial property perspective)
- The Autumn statement in full
- Government press release: Autumn Statement 2016: some of the things we've announced
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.