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Autumn Budget – Key Employment Points

In the Autumn budget a number of announcements were made relating to the employment of staff, the key points were:

  1. Employers are now liable to pay Class 1 NICs on any part of a termination payment that exceeds the current £30,000 that currently applies for income tax.
  2. In relation to non- contractual payments in lieu of notice (PILONs) these will be treated as earnings rather than termination payments and will be subject to income tax and Class 1 NICs. This will be done by requiring the employer to identify the amount of basic pay that the employee would have received if they had worked their full notice. This change will take effect t from April 2019. Note that the changes to the treatment of PILONs for income tax and Class 1 NICs will still apply from April 2018.
  3. The scale of charges for calculating the taxable benefit for an employee who has use on a company car has also been increased based on CO2 emissions and also increases diesel supplement. These changes will apply from April 2018.
  4. Existing concessionary, travel and subsistence overseas scale rates are now placed on a statutory basis. Employers will now only need to ensure that employees are undertaking qualifying travel.
  5. Employers will no longer be required to check receipts when making subsistence payments using benchmark scale rates. This will apply to standard meal allowances paid in respect of qualifying travel and overseas scale rates.
  6. The government will consult next year on extending the scope of tax relief currently available to employees and the self-employed for work related training costs.