UK Budget 2018 – Payroll Overview
Chancellor of the Exchequer Philip Hammond has delivered his Budget to the House of Commons. It is the first time a budget has been held on a Monday since 1962.
Below I have highlighted some of the changes that affect UK Payroll.
The Personal Tax Allowance and the Higher Rate Threshold have been increased earlier than expected and come into effect from April 2019
- Personal Tax Allowance will increase to £12,500
- Higher Rate Threshold will increase to £50,000
The government will be making a few changes relating to National Insurance contributions.
- The Employment Allowance of £3,000 will be restricted from April 2020 to employers with a NICs bill of less than £100,000
- The introduction of Employer NICs on termination payments over £30,000 will be delayed until April 2020.
National Minimum/Living Wage
The government has accepted the recommendations made by the Low Pay Commission and will increase the minimum rates from April 2019.
The rates effective from April 2019 will be
- Over 25s – £8.21
- 21 to 24 – £7.70
- 18 to 20 – £6.15
- 16 to 17 – £4.35
- Apprentices – £3.90