There are only a couple of points we would like to raise for you for Mr Hammond’s announcement:
National Living Wage and National Minimum Wage rate changes:
- The government will increase the National Living Wage (NLW) by 4.2% from £7.20 to £7.50 from April 2017.
- The following increase will also apply for the NMW rates from April 2017:
o The rate for 21 to 24 year olds will increase from £6.95 to £7.05 per hour
o The rate for 18 to 20 year olds will increase from £5.55 to £5.60 per hour
o The rate for 16 to 17 year olds will increase from £4.00 to £4.05 per hour
o The rate for apprentices will increase from £3.40 to £3.50 per hour
The government will provide additional support targeted at small businesses to help them to comply.
Changes to salary sacrifice:
The tax and employer National Insurance advantages of salary sacrifice schemes will be removed from April 2017, except for arrangements relating to pensions (including advice), childcare, Cycle to Work and ultra-low emission cars. This will mean that employees swapping salary for benefits will pay the same tax as the vast majority of individuals who buy them out of their post-tax income.
Arrangements in place before April 2017 will be protected until April 2018.
Arrangements for cars, accommodation and school fees will be protected until April 2021.
If you have any questions or need to review your HR requirements in light of the above – just give us a call on 0113 386 9270.