The Chancellor of the Exchequer’s Autumn statement included a number of important employer tax announcements which are set out below:
National Living Wage
This applies to all employees 25 or older and raises to £7.50 per hour from 1st April 2017. It is currently £7.20 per hour.
Income and Capital Gains tax reliefs on these schemes will be removed from 1st December. This is his first step in abolishing employee shareholder status following research which found the schemes were mainly being used by wealthier employees for tax planning.
Tax Treatment of Termination Payments.
Pay in lieu of notice is to be calculated by reference to basic pay alone.
From 2018/19 all pay in lieu of notice, contractual and non-contractual, to be taxable and subject to Class 1 national insurance contributions.
Amounts over £30,000 to be subject to Class 1 national insurance contributions.
Call Gareth Dando on 01484 558060, email firstname.lastname@example.org for more information and advice.