The 2013 budget was a tad lack lustre, but then what can we expect on the edge of a triple dip recession!
That said, employers and employee can take some comfort.
The Employment Allowance for small and medium employers will come into effect in April 2014, crediting £2,000 off the employer national insurance bill (and talk of extending this to charities and the not for profit sector).
For start up business the chancellor says that a person who’s set up their own business, and is thinking about taking on their first employee, will benefit by being able to hire someone on £22,000, or four people on the minimum wage, and pay no jobs tax.
The personal tax allowance will rise to £10,000 next year rather than in 2015 and the single tier pension, worth £144 a week, will come into force in 2016.
n another step to support employers, corporation tax will come down from 21 per cent to 20 per cent in 2015. George Osborne said: “I want us to send a message to anyone who wants to invest here, to create jobs here, that Britain is open for business.”
The chancellor also reconfirmed the launch of tax free childcare for working families, under which many employed parents will become eligible for 20 per cent off the first £6,000 of childcare costs for each child.
For those in the military, they will not be part of the 1 per cent cap on public sector pay rises.
Another development for employers was the doubling of the tax-free season ticket loan threshold to £10,000. (who travels that far?) Great help to employers looking to keep staff with long commutes.
I was going to add Vince Cable’s new employee share ownership packages deals is coming providing they are prepared to sacrifice protection for shares! But I am delighted that the House of Lords as struck out the sexists rules that penalised pregnant women.
Talking of sacrificing, don’t forget too that it is to become harder for employees to take their employers to tribunal with new fees PLUS the Jackson reforms making access to court much riskier for litigators (and of course, legal aid is dead, long live the litigant in person)