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.