How The 2018 Budget Affects You & Your Business
Hallowe’en might be a few days off, but this afternoon The Chancellor of the Exchequer announced the 2018 Autumn Budget so let’s take a quick look at how the new policies affect you, your business and your employees.
2018 Budget – Main Points Regarding Employees
- The personal allowance threshold, that’s the rate at which people start paying income tax, will rise from £11,850 to £12,500 in April; a year earlier than planned.
- The higher rate income tax threshold, that’s the point at which people start paying tax at 40%, will rise from £46,350 to £50,000 in April
- After that, the two rates will rise in line with inflation
- National Living Wage increases by 4.9%, from £7.83 to £8.21 an hour, from April 2019
- The contribution of small companies to apprenticeship levy to be reduced from 10% to 5%
(This new information was taken from the BBC News Website’s recent update)
National Living Wage
The Low Pay Commission submitted recommendations and today, the government announced that it would accept those recommendations.
Therefore, if you are looking at budgets for next year you should be using the following rates.
The minimum contributions that you and your staff must pay into your automatic enrolment workplace pension scheme are increasing in April 2019 as well. As per the Pensions Regulators website the increase will be as follows:
What Do You Need To Do As An Employer?
NLW increases – Make sure you write a letter to your employers and advise them of their new rates of pay. You don’t need to give them new contracts of employment but you should give them an amendment to contract. If you haven’t updated your contracts since GDPR then this could be an opportunity to review your contracts and ensure they are still fit for purpose.
Pension Increases – You should write to your employees and advise them that there will be an increased contribution – just like you they need to budget and an additional 2% can be a lot for some families.
How I Can Help You?
Just like your car’s MOT or your own physical health and wellbeing, it is important to ensure you keep up to date with your Human Resource needs. The good news is, unlike NLW and Pensions, my HR Health Check does not increase when the budgets increase as it is completely free!
If you would like to book an informal chat, please click here.
Don’t keep it a secret
Did you find this blog useful? Think you have fellow business owners that would too? Feel free to share or ‘like’ using social media buttons to the left.
Sign up to my blog
Did you enjoy reading this blog? if so please sign up so you can receive them directly to your inbox each week ... keep your FOMO in check.