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Soundbite: What are the key points from the Autumn Statement which will affect employers?

We have recently heard the Autumn Statement from the Chancellor of the Exchequer, which has obviously impacted on financial markets.  However, what are the key points affecting employers?  We’ve set out some of the key points below:

  • Repeal of the recent IR35 reforms – these reforms placed the onus on the end user to determine whether the worker would be deemed an employee (or an office holder) of the client for tax purposes if there was a hypothetical direct contract between them (the status determination).  This means that the original rules in relation to IR35 will apply, and the status determination will be the responsibility of the consultant once more.
  • Expansion of company share option plans- tax-advantaged discretionary share option plans under which employers may grant options to employees.
  • Introduction of “investment zones” – businesses will, amongst other things, benefit from zero rate employer NICs on earnings up to £50,270 for all new employees who work in the zone at least 60% of the time
  • Cuts to income tax and national insurance- The basic rate of income tax will decrease from 20% to 19% in April 2023

As always, if you have any questions about the changes and how they will impact your business, please do get in touch.

#employmentlaw #mellor #IR35