The Autumn Statement 2016 and what it means for Payroll
Chancellor Phillip Hammond delivered his first Autumn statement on Wednesday, here are some of the key points for payroll
Its good news for workers aged 25 and over as Chancellor Phillip Hammond announced the National Living wage will rise 4% from £7.20 to £7.50 effective from April 2017. The rise will represent a 30p per hour increase on the current National Living Wage.
The Personal income tax allowance is set to rise to £11,500 from the current rate of £11,000 with a further increase to £12,500 by 2020.
The Higher Rate income tax threshold will also see a rise in April 2017 to £45000 with a further increase to £50,000 by 2020
The Employee and Employer National Insurance threshold is to be aligned at £157 a week from April 2017 meaning that both employees and employers will start paying National Insurance on weekly earnings above £157.
The Autumn statement also confirmed a cut to the Tax and NI advantages on salary sacrifice schemes, however there are some exceptions for ultra-low emission cars, Pensions, Cycle to work and Childcare.
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