National living wage, for workers aged 25 and over, will increase to £7.50 with effect from 1 April 2017.

National minimum wage rates will also increase with effect from 1 April 2017! The new rates will be:
21-24 year olds = £7.05 per hour;
18-20 year olds = £5.60 per hour;
16-17 year olds = £4.05 per hour; and
Apprentices (aged under 19 or in the first year of apprenticeship) = £3.50 per hour.

Salary sacrifice arrangements will be restricted from 1 April 2017, the only benefits that will attract relief from tax and National Insurance contributions will be:
Enhanced employer pension contributions (to registered pension schemes).
Childcare benefits related to employer’ supported childcare or provision of workplace childcare.
Cycles and safety equipment purchased under the cycle to work scheme.
Ultra-low emission cars.
As we’ve previously looked at, taxation of termination payments is going to change with effect from April 2018. In particular:
Any payments made to an employee that would have been made if he had or would have worked his notice period will be taxable, but it is now proposed that this will apply to basic pay only and not to bonus payments.
Any payments made to an employee as compensation for loss of employment will continue to be tax free up to £30,000. Where compensation is paid in excess of £30,000, income tax and employer’s National Insurance contributions will be payable on the balance.
The £30,000 limit does not apply to compensation for injuries. However, in Moorthy v HMRC it was confirmed that this exception applies only where there is a recognised medical condition that results in termination of employment. Mr Moorthy had received £200,000 compensation from his employer which included compensation for injury to feelings arising from alleged age discrimination – the court confirmed that the exception does not apply to injury to feelings. The legislation on this exemption is expected to be clarified by April 2018.
The income tax and capital gains tax reliefs associated with employee shareholder status for any agreements entered into on or after 1 December 2016; however, take up of the employee shareholder provisions has been fairly low and so this may not have an impact on you or your staff.