PERSONAL ALLOWANCE: April 2017/18 = Basic allowance £11,500, income above this amount taxed at basic rate tax, 20%.
Higher rate tax income above £45000, taxed at 40%
National Insurance: April 2017/18 = Pay 12% employee national insurance above annual salary of £8164.00
Employer 13.8%, employees over 21
SELF EMPLOYED: Pay class 2 NIC at £2.85 per week if profit is over the small profit threshold, of £6,025.
Also pay class 4 NIC if profit exceed £8,164 at lower profit limit at 9%,
Upper limit profit at £45,000 at 2%.
ISA limit: raised to £20,000
DIVIDEND INCOME: an allowance of £5,000, excess of annual allowance taxed at 7.5%, for basic tax payer.
SAVINGS: £1,000 of interest on savings earned will be tax free for a basic rate taxpayer and £500
For higher taxpayer.
BUSINESS RATE: 100% relief for a business that occupies a property with a value of £12,000 or less.
TERMINATION PAY: From April 2018 – employers will pay National Insurance contributions on payoff (e.g. termination payments) above £30,000.
At present, payments up to £30,000 remain tax free & no NI liable.
KNOW THE LAW:
UNFAIR DISMISSAL: You must have a good reason to dismiss someone and show that you have been fair in the way you have acted. This means:
· Informing the employees of the problem you have with their conduct or performance
· Holding a meeting to discuss the problem
· Allowing the employee to be accompanied
· Deciding on appropriate action
· Providing employees with an opportunity to appeal
NOTICE: an individual is entitled to one week’s notice if you wish to dismiss them. This notice rises to two weeks after two full years and continues to increase by one week per year up to a maximum of 12 weeks. Notice period can be extended by agreement.
HOLIDAY ENTITLEMENT: employees are entitled to holiday leave from their first day of employment.
Maternity leave: an employee has the right to 52 weeks maternity leave regardless of their length of service.
AGENCY WORKERS: are entitled to the same basic conditions of employment – notably pay & holidays – as comparable to permanent employees after a 12 week qualifying period.
WORK PLACE PENSION:
Every employer must set up & contribute to a workplace pension for every eligible job holder. To be eligible a job holder must be age 22 or earn an excess of £10,000. Employer will contribute a minimum of 1% or a maximum of 3%.