Spring Budget 2017: Has the Chancellor sprung any surprises for employment?

Published on: 17/03/2017

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The 2017 Spring Budget was announced by the Chancellor Phillip Hammond and except for the self-employed, the changes were seen to be fairly uneventful from an employment law perspective. 

Here is a summary of the key announcements:

  • Personal allowance will rise by £500 to £11,500, thus the amount an individual can earn tax free will increase.
  • The tax-free dividend allowance will be reduced to £2000 from £5000 from April 2018. This measure aims to “remove the incentive for a self-employed person to incorporate and pay themselves a dividend rather than a salary in order to reduce their employment tax liability.”
  • £5 million will be used to promote “returnships” helping people back into employment after a career break.  The Prime Minister confirmed that the majority of such schemes would benefit women returning to work after a career break.
  • Consultations and calls for evidence will be launched (on 20 March) on the taxation of benefits in kind, accommodation benefits and employee expenses.

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