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HR update from last months budget

As you will be aware the Chancellor’s budget last month included a number of points that affect HR and employment and I have summarised these below.

  • The key announcement for employers is that from 2018 termination payments over £30,000, which can currently be paid tax-free, will be subject to compulsory national insurance contributions.
  • From April 2017, the tax threshold will rise to £11,500 which continues on target to reach the £12,500 threshold promised in the Conservative manifesto before they came to power.
  • The threshold for employees paying the 40% tax rate will also be increased, to £45,000, and self-employed people will no longer have to pay Class 2 National Insurance contributions from 2018.
  • The Government will continue to clamp down on tax evasion and tax avoidance schemes by toughening the rules on the use of umbrella or personal service companies.
  • The Government also announced that it is considering limiting the number of benefits for which there are tax and national insurance contribution advantages when they are provided under a salary-sacrifice scheme. However, schemes related to pension saving, childcare and health (such as cycle-to-work schemes) should not be affected.

If you have any questions or queries about the above and how it impacts your company then give us a call.


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Tel +44 (0) 1628 622722

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We can help you hire and retain the best employees, manage your employees more successfully, and improve employee motivation. Whatever your HR outsourcing needs, In2HR can assist any company within the Thames Valley areas, including Berkshire, Buckinghamshire, Oxon and Surrey. So why not contact us today.

employee development  1 Jones House  High Street  Bray  Berkshire  SL6 2AH  Tel 01628 622722
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