National Insurance (NIC)
No big giveaways on the NIC front, but a couple of small announcements tucked away alongside some previously announced upcoming changes:
National Minimum Wage
Just as a recap, from October 2016 the National Minimum Wage rates were increased to:
· employees aged 25 and over £7.50 (to be revised in April 2018)
· employees aged between 21-24 – £6.95
· employees aged between 18-20 – £5.55
· employees aged between 16-17 – £4.00
· apprentices up to age 19 or in their first year of apprenticeship – £3.40
The above minimum wage rates are legally enforceable.
From April 2017, the National Living Wage for those aged 25 and over will be set at £7.50, rising to over £9.00 by 2020.
National Insurance threshold – employers and employees
The Chancellor announced that from April 2017 the threshold for paying NIC would increase to £157.00 per week and that this threshold would be the same for both employers and employees.
There were no further announcements on the Employment Allowance since its increase to £3,000 from April 2016.
The Chancellor gave no further updates on the proposed apprenticeship levy to be introduced in April 2017. The levy will mean an employer will receive a 10% top up of their levy contributions which will be available for them to spend on apprenticeship training.
If you have any questions on National Insurance or payroll matters our specialists are on hand to help, give them a call on 01228 711888.