Other tax and legislation changes affecting employee benefits from April 2018

The following is a summary of some of the changes that employers need to be aware of from April 2018:

  • The automatic enrolment thresholds for the 2018/19 tax year are:

  • Statutory sick pay is increased from £89.35 a week to £92.05 a week from 6 April 2018.
  • From 1 April statutory maternity, adoption, paternity and shared parental leave pay is increased from £140.98 a week to £145.18 a week.
  • The lifetime allowance for pension savings is increased by the Consumer Prices Index (CPI) by 3% from 6 April 2018 to £1.03 million.
  • Some salary sacrifice benefits were limited from 6 April 2017 with a deadline of 6 April 2018. Arrangements concerning cars, accommodation and school fees are protected until 2021. Pensions, childcare vouchers and bike to work schemes have remained exempt.
  • The national living wage has increased from £7.50 an hour to £7.83 an hour for employees aged 25 and over.

No changes to the following:

  • The pension annual allowance remains at £40,000. Can be reduced to £10,000 for higher earners.
  • The money purchase annual allowance remains at £4,000.

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