It is that time of year again when Mr Osborne appears with his red box and we all hope that he is going to deliver some good news for us. As Jamie Oliver rejoices at the sugar tax, what did the rest of the report have in store for employers/employees?
- The income tax personal allowance will be increased to £11,500 in April 2017 and the basic rate limit will be increased to £33,500 for 2017/18.
- The threshold at which people pay 40% income tax will rise from £42,385 now to £45,000 in April 2017.
- The government will bring forward a package of changes to tackle the use of disguised remuneration avoidance schemes, including the insertion of an additional targeted anti-avoidance rule with effect from 16 March 2016 and the withdrawal of transitional relief on investment returns after 30 November 2016.
- Changes will be introduced designed to cap exempt gains in the context of employee shareholder status.
- Termination payments paid to an employee of over £30,000 will attract employer NICs from 2018. For now the first £30,000 of a termination payment remains tax free.