More than two million people are expected to benefit from increases to the National Minimum Wage for under-25s and apprentices, the chancellor has said in his Spring Statement. He has also pledged to increase the National Living Wage to £7.83 from April 2018. This is said to be worth £600 extra a year for a full-time worker.
In addition, the tax-free personal allowance – the amount you earn before you start paying income tax – will rise to £11,850 from April 2018. This means that in 2018-19, a typical taxpayer will pay £1,075 less income tax than in 2010-11.
Other highlights of the Spring Statement include:
• Business rates revaluation to come one year early: the chancellor has announced that the next revaluation, currently due in 2022, will be brought forward to 2021. This will mean businesses will change to three-year revaluations earlier, with the first taking place in 2024.
• More tax relief of self-funded training: To support up-skilling and retraining, the government is seeking views on extending the current tax relief to support self-employed people and employees when they fund their own training.