The Autumn statement was announced by chancellor Philip Hammond on the 23rd Nov 2016. Detailed below are some of the key changes that were
Personal allowance: Currently the personal allowance is £11,000 and it will rise to £11,500 in 2017-18 and £12,500 by 2020-21. An individual will start paying higher rate tax after earning £45,000 in 2017-2018.
The National living wage for individuals 25 years and over will rise from £7.20 to £7.50 per hour from April 2017.
The Minimum wage will rise as for 21 to 24 year olds from £6.95 per hour to £7.05. Individuals aged between 18 to 20 years will see a rise from £5.55 per hour to £5.60. Those between the ages 16 to 17 will rise from £4.00 per hour to £4.05, and finally apprentice minimum wages will rise from £3.40 per hour to £3.50.
Corporation tax will reduce from 20% to 17% by 2020. From April 2017 the National Insurance threshold for employer and employee's will be aligned at £157 per week as opposed to the current threshold which is £155.01 for employee contributions and £156.01 for employer contributions.
Salary sacrifice is a way of receiving non cash benefits from your employer in exchange of your salary. From April 2017, most salary sacrifice schemes will be taxed as cash income. Salary sacrifice schemes such as pensions, child care vouchers and cycle to work scheme will not be affected.
NS&I Investment Bonds will offer a near three year investment bond with an indicative rate of 2.2% from April 2017. The bond will offer the flexibility to save between £100 and £3000 and it will be available to those aged 16 or over.
The State Pension is set to rise by 2.5% in April 2017.