Alongside the important changes being made to IR35 in April 2020 (which you can read here), the Budget of 29.10.18 also announced:
The National Minimum/Living Wage will rise:
The Low Pay Commission (LPC) has recommended that the hourly rates should increase in April 2019:
- from £7.83 to £8.21 for workers aged 25 and over (the National Living Wage)
- from £7.38 to £7.70 for 21-24 year olds
- from £5.90 to £6.15 for 18-20 year olds
- from £4.20 to £4.35 for 16-17 year olds
- from £3.70 to £3.90 for apprentices aged under 19 or in the first year of their apprenticeship.
“The government accepts these recommendations”, and this document sets out the Governments response.
Apprentice Contributions for small, non-levy paying companies will be halved from 10% to 5%.
No date has yet been given for this change – the full document can be read here.
Employment Allowance Reform
The Government says that – The Employment Allowance is currently claimed by over 1.1 million employers to reduce their employer National Insurance Contributions bill by up to £3,000. The EA was introduced to support businesses to grow and hire new staff. At present, big businesses get the same benefit as small businesses.
At the budget it was announced that the Employment Allowance (EA) is being retained, but targeted at those businesses that need it most. From 2020-21, the government will limit access to the EA to businesses and charities with an employer National Insurance contributions (NICs) bill below £100,000.
You can read the full details here.