A summary of the employment announcements set out in the Autumn 2017 budget are:

  • Following the Low Pay Commission’s recommendations, the government will increase the national minimum wage from April 2018 to the following hourly rates:

– Apprentices: £3.70 (up from £3.50)
– 16-17 year olds: £4.20 (up from £4.05)
– 18-20 year olds: £5.90 (up from £5.60)
– 21-24 year olds: £7.38 (up from £7.05)

  • The national living wage for those age 25 and over will increase to £7.83 (up from £7.50)
  • Also from April 2018, the tax free personal allowance will rise from £11,500 to £11,850; with the higher rate tax threshold rising to £46,350.  The government is committed to raising the personal allowance to £12,500 and the higher rate tax threshold to £50,000 by 2020.
  • The government will publish a discussion paper exploring the case and options for longer term reform of the employment status tests so that employment rights and tax is clearer.
  • The government is considering extending the IR35 reforms (off-payroll working rules) introduced in the public sector in April 2017 to the private sector.  The government has commissioned research, due to be published on 2018.  It will then consult on its proposals.

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