Two weeks have now passed since Philip Hammond unveiled to Parliament the details of his 2017 Budget. It’s fair to say that it wasn’t regarded as the most exciting Budget of recent times, with little in the way of sweeping or surprising changes.
However, the new financial legislation announced has undoubted implications for payroll management.
These implications largely relate to personal taxation. In particular – we now know the new tax thresholds that will take effect from April 2018, with the tax free personal allowance rising to £11,850. Whilst there are no changes in relation to the additional, 45% rate – the higher rate tax threshold will increase to £46,350. Those with payroll responsibility will need to ensure that they are ready to apply the new bandings when 2018/19 begins.
The living wage is a further area impacted upon by the Budget. Indeed – as a consequence of the Budget, this shall increase from £7.50 to £7.83 per hour; a 4.4% increase, which employers will have to take account of and payroll providers will need to reflect accordingly.
Meanwhile, Hammond’s decision to increase the existing diesel supplement in company car tax by 1% will wield an effect on employees’ taxable benefits.
At Dataplan, we are determined that all of our customers know what the Budget means for them – and will ensure that our payroll software reflects the changes with on-point precision.