This is the last time that we will see a Spring Budget – the main budget will be seen in the Autumn from now on – so the way businesses plan their year may also change in response to this.
These are the main points that concern HR and human resources departments:
The announced plan to increase NI rates of the self-employed was met by uproar, especially as the present government has made a pledge to support the small business. As a result, Chancellor Philip Hammond had to make a U-turn on this in the days that followed the announcement. Good news for the moment for the ever-increasing gig economy. Read our previous blogs on the Gig Economy here.
The initial decision was intended to help even up the tax benefits between employed and self-employed people, with Hammond stating that there was around a £4,000 disparity between the tax paid by an employed and self-employed person each earning £32,000. However, as critics have stated, the self-employed don’t benefit from the likes of sick pay, holiday pay and maternity pay to name just a few.
But as more people diversify in their working lives, experts say that this has only served to highlight that issues with taxation will become ever more complex – and could be a threat to the gig economy if people can no longer afford to freelance.
Back to work
An interesting development for those of us in HR is the promise to support those returning to work after a career break. A total of £5 million has been set aside to help these people, which will of course include many women coming back into the workforce after having children.
Business rates are set to be capped, so that they will not rise by more than £50 a month. A £300m discretionary fund will go to local authorities to enable them to help businesses with their rates where they see fit.
National Living Wage
As we know from the Autumn Statement, the National Living Wage is set to increase to £7.50 this month. The personal tax allowance rises to £11,500 and the higher tax rate now starts at £45,000.
Educations, skills and training
Technical skills come into focus, with the launch of T-Levels, for those training in the sector from age 16-19, while the number of technical courses available will be cut in order to raise the quality of the remaining ones. £40 million will be ploughed into the Department of Education to test and pilot a number of lifelong learning projects. Increasing STEM skills (science, technology, engineering and maths) in schools is also going to be a priority.
And finally, you should have heard from the Pensions Adviser or someone in your organisation who may have information about your staging date. Most payroll companies use the auto-enrolment software and can set up the scheme, but if you have any queries please contact us at email@example.com.
If you would like to discuss this subject further and how it may affect your business, please contact Cecily Lalloo at Embrace HR.
T: 07767 308717 or send a message.
Based in Aylesbury, Buckinghamshire, Embrace HR supports business owners who do not have their own HR department or those that do but need help from time to time. We also work across the Home Counties of Oxfordshire, Bedfordshire and Hertfordshire, and also SMEs based in London.