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.