Tag Archives: salary

Budget 2017 – how will it affect you?

Chancellor Philip Hammond has just announced the final Spring Budget, and in it we saw investment in education (some controversial), money allocated towards the crisis in social care, increased NI on the self-employed and much more.

What you said
budget-twitter-poll-2017-400On Monday 6th March we asked our Twitter users to decide which of our choices they thought were the most important factors in the Budget – almost half our 4,265 respondents (47%) said social care, NHS and benefits were, with 25% saying national living wage and 22% income tax rates.

Among the most popular topics mentioned in ‘other’ were the state pension, defence and clamping down on tax havens, while by and large people accepted that tax rises would be needed as long as they could be ring-fenced for NHS and social care. Anyway, here’s a summary of what he said….

Personal taxes

  • The national living wage will rise to £7.50 per hour in April.
  • Personal allowance (how much you can earn in a year before being taxed) will rise to £11,500 – the seventh consecutive annual rise, with a rise to £12,500 the target by 2020.
  • Higher tax rate threshold will rise too from £43,000 to £45,000 (except in Scotland), with the aim being to reach £50,000 by 2020.
  • However, there is more tax on the self-employed – an extra £145m to be raised by 2021-22
  • National Insurance rises for the self-employed: class 4 NICs will increase to 10% in 2018, with a further 1% increase in 2019. Some experts say this goes contrary to the Government’s 2015 manifesto.  

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National Living Wage introduced

National Living Wage

National Living Wage comes into effect on 1 April

On Friday 1st April the National Living Wage comes into effect – a £7.20 an hour rate for workers aged 25 or over, allowing more than a million low-paid workers a pay rise. 

This compares favourably to the national minimum wage of £6.70 an hour for age 21 and over (£5.30 for those aged 18-20), though the new National Living Wage does not apply to those yet to reach 25 years old.

The measures were included in the Chancellor’s Budget in July 2015, and are intended to rise to £9 an hour by 2020.

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Closing the gender pay gap

Successful business woman leading a groupMarch 8th is International Women’s Day 2016, and the theme this year is #PledgeForParity.

Regulations announced on 12 February 2016 say that companies with more than 250 employees that fail to prevent pay gaps between male and female staff will be named in new league tables, a measure said to affect around 8,000 employers across the UK.

The measures won’t take place until 2018, which gives firms time to address the issue and redress the balance.

Estimates from the ONS (Office for National Statistics) in November 2015 showed that in the year to April 2015, average earnings for full-time employees increased by 1.8 per cent.  But within those figures, there were a number of gender pay gaps.   Continue reading