The 2016 budget was announced on 16 March 2016. Here is a short list of the key employment changes you need to know about:
- From April 2018, non-contractual payments in settlement agreements over £30,000 will be subject to deductions for employees' national insurance contributions.
- From 6 April 2017, public sector employers should deduct income tax and employees' national insurance contributions when making payments to personal service companies, if the contractor engaged by the personal service company would have been an employee if they were providing their services directly to the employer.
- From 2017, employers who hire illegal workers will not receive employees' national insurance contributions employment allowance for one year, if they receive a civil penalty for this offence.
- From April 2017, employers will be entitled to receive a 10% top-up to their monthly apprenticeship levy contributions to spend on training apprentices.
- The right will be removed for employees not to pay tax on loans, company cars and accommodation provided by their employer, if the employee reimburses the employer for the cost of those benefits.
- A new tax-free childcare scheme will be launched in 2017.
- The government is considering reducing the benefits which attract tax relief under salary sacrifice arrangements.
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