We have assumed you are not a Scottish taxpayer and that you are aged 25 or over.
National Living Wage
The National Living Wage is paid to employees aged over 25. Those aged 24 and under receive the National Minimum Wage.
The National Living Wage rises every April, and from April 2018 it rises from £7.50 to £7.83 per hour. So you will be earning more per hour.
The personal allowance is increasing from £11,500 to £11,850 from April 2018. So you may save some tax depending on your level of earnings.
From April, the point at which employees pay National Insurance is rising from £8,164 to £8,424. So similarly to tax, you may save some national insurance depending on your level of earnings.
Unless you have opted out, the amount your employer deducts from your pay for your workplace pension contribution will be increasing from April 2018 from 1% to 3%. There are different ways of calculating your contributions, but many employers will only apply contributions to anything above the lower earnings threshold which is £6,032 from April 2018.
By Jo Nockels
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.