Chancellor George Osborne last month delivered the Budget 2016 aiming to, amongst other things, “deliver security for working people”. As always taxes were central to the announcements and therefore employers will have to update their payroll systems accordingly.
Here are the key points to note:
- Termination Payments: From 2018 employment termination payments over £30,000 will be subject to employers national insurance contributions. Currently, payments under £30,000 are given tax-free.
- Income Tax Rates: Employees’ personal allowance will increase to £11,000 from April 2016 and further to £11,500 from April 2017. In addition, the threshold for employees subject to the 40% tax bracket will increase from £42,385 currently to £45,000 in April 2017.
If you have questions concerning these changes or need help implementing them in your business please contact us today on 01245 893400 for FREE 30 minute employment law consultation.
The Backhouse Solicitors Team