The Chancellor outlined his Autumn statement (mini budget) today  and here are the items that affect employers and employee that you should be aware of.

• Income tax threshold to be raised to £11,500 in April, from £11,000 now, Employees will now not pay income tax until they reach this threshold.
• Higher rate income tax threshold to rise to £50,000 by the end of the Parliament.
• tax savings on salary sacrifice and benefits in kind to be stopped with exceptions for ultra-low emission cars, pensions, childcare and cycling. Salary sacrifice allow some employees to give up some of their salary in exchange for goods and services. This lowers their income tax and national insurance bill because their salary is effectively lower.The most popular use is for pensions, childcare vouchers and bicycles in the cycle to work scheme  all of which will be unaffected, as will employees getting an ultra-low emission company car.

  However, other items bought under the scheme such as computers, gym membership, and health screening will be subject to tax from April 2017. This could prompt a closing-down sale of these deals before the new rules take effect.

• National Living Wage to rise from £7.20 an hour to £7.50 from April next year for those aged 25 and over. This is a smaller rise than had been predicted earlier in the year.
• Employee and Employer National Insurance thresholds to be equalised at £157 per week from April 2017.

If you have any questions relating to this or any employment related matters please feel free to contact us on 01920 463777 or email ilock@qandalaw.co.uk