Following the budget today, the following are key points of interest to employers:
National Living Wage (NLW)
From April 2018 the Government will increase the NLW, which applies to workers aged 25 and over, by 4.4% from £7.50 to £7.83. The Low Pay Commission has estimated that this will benefit over 2 million workers.
National Minimum Wage (NMW)
From April 2018, he NMW rates will be increased as follows:
from £7.05 to £7.38 for 21 to 24 year olds;
from £5.60 to £5.90 for 18 to 20 year olds;
from £4.05 to £4.20 for 16 and 17 year olds; and
from £3.50 to £3.70 for apprentices.
Taxation
In the 2018/19 tax year the personal allowance will increase to £11,850 and the higher rate tax to £46,350.
Employee’s electric vehicles
With effect from April 2018, there will be no benefit in kind charges on electricity that employers provide to charge employees’ electric vehicles.
Employment status
The Government will publish a discussion paper as part of its response to the Taylor review of employment practices, which will explore the case and options for longer-term reform to make employment status tests for both employment rights and tax clearer. It has acknowledged that this is an important and complex issue, and it will therefore work with stakeholders to ensure that any potential changes are considered carefully.