On 23 November 2016, Philip Hammond delivered the 2016 Autumn Statement which included a number of announcements of relevance to employers and employees.
From April 2017:
The income tax threshold will be raised to £11,500.
The national living wage will rise to £7.50 an hour.
Tax advantages on salary sacrifice and benefit schemes will be removed (with the exception of arrangements in respect of pensions, childcare, Cycle to Work and ultra-low emission cars). Arrangements in place before April 2017 will be protected until April 2018 or April 2021 depending on the nature of the scheme.
National Insurance contribution (NIC) thresholds will align so both employers and employees will pay NIC on weekly earnings over £157.
The responsibility for paying the correct tax on payments by public sector engagers to workers supplied via personal service companies will be moved to the engaging body.
All employees called on to give evidence in court will no longer be liable to tax on legal support from their employer.
From April 2018:
With regard to termination payments,employees' basic pay in respect of their notice period will be liable to income tax and NI deductions whether notice is worked or paid in lieu (regardless of the terms of the contract). This is a significant step back from the government's proposals to also tax expected bonus income and benefits in kind which would have been earned during the employee's notice period. The £30,000 exemption from tax and NIC which applies to termination payments will remain. However, employer NICs will align with the income tax treatment of termination payments. This means employers NICs will be due on termination payments above £30,000.
Finally:
An additional £4.3 million is being invested to help enforce national minimum wage compliance and the higher rate income tax threshold will rise to £50,000 by the end of the Parliament.
Tax relief on employee shareholder shares acquired on or after 1 December 2016 has been abolished.