The Budget: what does it mean for HR?
From April 2018, termination payments that are subject to income tax on amounts in excess of £30,000 will be subject to employer national insurance contributions (NICs). The £30,000 exemption will remain. Currently the whole termination payment is outside the scope of employee NICs and this will remain the position.
Shared grandparental leave
In May 2016, the Government will launch a consultation on how it plans to extend Shared Parental Leave and Pay to working grandparents. It will also cover options for streamlining the Shared Parental Leave and Pay system, including simplifying the eligibility requirements and notification system.
The Government may restrict the range of benefits offered through salary sacrifice schemes. Having said that, salary sacrifice for enhanced employer pension contributions, childcare benefits and health-related benefits, such as the cycle to work scheme are likely to be unaffected.
From April 2017, employers will receive a Government payment equal to 10% of their monthly apprenticeship levy contributions to spend on apprenticeship training.
A lifetime limit of £100,000 on CGT relief has been introduced and will apply to shares issued for entering into an employee shareholder agreement after 16 March 2016. When shares are disposed of, gains up to the lifetime limit will be exempt from CGT. Gains above the lifetime limit will be chargeable to CGT in the normal way.
Loss of NICs allowance for employers of illegal workers
From April 2017, employers will be denied the NICs allowance for one year if they have been penalised for employing illegal workers.
Leave a comment
Thank you for choosing to leave a comment. Please keep in mind that comments are moderated. Please do not use a spammy keyword or a domain as your name or it will be deleted.