So this afternoon a couple of days early due to Halloween the Autumn Budget was announced.
Main Points regarding Employees
- The personal allowance threshold, the rate at which people start paying income tax, to rise from £11,850 to £12,500 in April – a year earlier than planned
- The higher rate income tax threshold, the point at which people start paying tax at 40%, to rise from £46,350 to £50,000 in April
- After that, the two rates will rise in line with inflation
- National Living Wage increasing 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%
(Information from BBC Website)
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 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 an employer?
NLW increases – Make sure you write 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?
Just like your car MOT or Health, it is important to ensure you keep up to date with your HR – my Basic HR Health Check does not increase when the budgets increase as it is free!
If you would like to book an informal chat then click here.