- Increase the living wage from £7.50 to £7.83 per hour
- increase the rate for 21 to 24 year olds from £7.05 to £7.38 per hour
- increase the rate for 18 to 20 year olds from £5.60 to £5.90 per hour
- increase the rate for 16 to 17 year olds from £4.05 to £4.20 per hour
- increase the rate for apprentices from £3.50 to £3.70 per hour
It is important you review all employees on the payroll to ensure you are compliant. With the new ‘RTI’ payroll reporting in place it would be very easy for HMRC to spot non-compliant employers and indeed a number of businesses have already been fined, named and shamed.
The Chancellor also announced that there will be no benefit in kind for people who charge their electric cars at work and at the same time has made some changes to the taxation of company diesel cars. He was clear to state this excludes vans. The cash equivalent where a van is made available to an employee for private use will increase to £3,350 for 2018/19 with the fuel benefit set at £633.
The employment allowance continues at £3,000 and it is vital if you are a single director company that you do not claim this (even if HMRC basic tools or your software allows it) as HMRC are now carrying out compliance checks in this area and are set to collect underpaid National insurance.