It was confirmed that, from April 2018:
In addition, payments equivalent to an employee’s basic pay during their notice period will be taxable, even if the employer had no contractual right to make a payment in lieu of notice.
However, the government seems to have dropped its more controversial proposal to tax certain "post-employment" and "expected bonus" payments as earnings.
The salary sacrifice regime has been significantly narrowed. From April 2017, the only benefits that will benefit from income tax and NICs relief are:
Existing arrangements will generally be protected until April 2018, with an extension until April 2021 in relation to cars, accommodation and school fees.
Employee Shareholder Status
In the immediate term, the income tax and capital gains tax reliefs associated with employee shareholder status will no longer be available for shares acquired in relation to an employee shareholder agreement made on or after 1 December 2016. For employee shareholder arrangements entered into before 1 December 2016, the tax advantages will continue to apply.
For the longer term, it was announced that ESS status will be closed to new users altogether "at the earliest opportunity". We will update on this once more detail is known.
National Minimum Wage
The national minimum wage and the national living wage will be increased from 1 April 2017 as follows: