The key employment related announcements made by the Chancellor in his Autumn budget 2017 include:
- There will be a consultation on employment status, on the case and options for reform to make the employment status tests for both employment rights and tax clearer.
- The government reformed the off-payroll working rules (known as IR35) for engagements in the public sector in April 2017. It then identified that a possible next step would be to extend the reforms to the private sector, to ensure individuals who effectively work as employees are taxed as employees even if they choose to structure their work through a company. There will be a consultation on this.
- In April 2018, the national living wage (applying to workers aged 25+) will increase from £7.50 to £7.83 in April 2018 and the national minimum wage will increase as follows:
- 21 to 24 year olds from £7.05 to £7.38 per hour
- 18 to 20 year olds from £5.60 to £5.90 per hour
- 16 to 17 year olds from £4.05 to £4.20 per hour
- apprentices from £3.50 to £3.70 per hour
- Save As You Earn scheme – from 6 April 2018, employees on maternity and parental leave can take up to 12 months’ pause (increased from 6 months currently) from saving into their Save As You Earn employee share scheme.
- From April 2018, there will be no benefit in kind charge on electricity that employers provide to charge employees’ electric vehicles.