Following the Autumn budget, we know that the National Minimum Wage will increase again in April 2018 to:

• £3.70 per hour for apprentices (this applies to apprentices aged under 19, or apprentices aged 19 or over in their first year of apprenticeship);
• £4.20 per hour for 16-17 year olds;
• £5.90 per hour for 18-20 year olds;
• £7.38 per hour for 21-24 year olds; and
• £7.83 per hour for 25+ year olds.

The tax free personal allowance will increase from £11,500 to £11,850 and the higher rate tax threshold will increase to £46,350. The government is committed to increasing the personal allowance to £12,500 and the higher rate tax threshold to £50,000 by 2020.

You may also remember from previous bulletins that the taxation of termination payments is due to change with effect from April 2018. In particular, there will be greater scrutiny of taxation of termination payments made to an employee that would have been paid to them during their notice period – if you’re tempted to make a tax free payment in lieu of notice to a departing employee you may need to take advice before doing so. In addition, where a termination payment exceeds £30,000 the excess will be subject to both income tax and employer’s National Insurance contributions.