The government wishes to see a higher wage for more experienced workers and so is introducing a premium for workers aged 25 and over, known as the National Living Wage (NLW). This will be over and above the National Minimum Wage (NMW) which will remain in place. The government will set the first premium in April 2016 at 50p which will increase the total NLW to £7.20.

(See HM Treasury: Summer Budget 2015, paragraph 1.120.)

Recommendations on both the NMW and the NLW have been requested by the government in their annual remit for the Low Pay Commission (LPC).

The LPC monitors, evaluates and reviews the effect of the NMW and provides the government with an annual report.

For the coming year, the LPC has been asked to monitor, evaluate and review the levels of each of the different NMW rates, and make recommendations on the increase it believes should apply from October 2016, as well as indicative NMW rates for 2017, in order to give more certainty to business. This report is requested by early February 2016.

The LPC has also been asked to consider the NLW. The government asks the LPC to recommend the level of the NLW to apply from April 2017, in a separate report, and to provide an indicative premium rate for April 2018. This second report is requested by October 2016.

For more information on the NMW, see Practice note, National Minimum Wage, and for details of the current rates of NMW, see Checklist, Current rates and limits for employment lawyers: National minimum wage.

Source: BIS, Low Pay Commission Remit 2016, July 2015.

The government will consult in Summer 2015 on simplifying the tax and NICs treatment of termination payments. In its final report on employee benefits and expenses, published in July 2014, the OTS made a number of recommendations relating to termination payments, including that the current £30,000 exemption should be replaced with a new income tax relief that is available in the case of statutory redundancy.

For more information, see Practice note, Taxation of termination payments: Reform.

(See HM Treasury: Summer Budget 2015, paragraphs 1.246 and 2.164.)

The government will "actively monitor" the growth of salary sacrifice schemes. The government notes that salary sacrifice arrangements have become more popular and therefore their cost to the taxpayer is increasing.

For more information about salary sacrifice arrangements, see Practice note, Salary sacrifice arrangements.

(See HM Treasury: Summer Budget 2015, paragraphs 1.197 and 2.66.)

The Chancellor has announced that HMRC is to consult further on possible reforms to the IR35 legislation as personal service companies are still seen as vehicles for avoiding tax through disguised employment. The consultation document will be released shortly.

For background on the existing legislation, see Practice note, IR35.

(See HM Treasury: Summer Budget 2015, paragraph 1.180, 1.181 and 2.183.)

The government will consult on devolving powers on Sunday trading to city mayors and local authorities to ensure that local areas have a greater say over their own economies. The consultation will look at allowing mayors or councils to extend Sunday trading for additional hours within parameters that they would determine.

For information about Sunday working for retail staff, see Practice note, Sunday working in shops.

(See HM Treasury: Summer Budget 2015, paragraphs 1.289 and 2.28.)

The government has committed to starting 3 million apprenticeships during the current Parliament, and wants to put control of the funding for this in the hands of employers. The government will introduce a levy on large UK employers to fund the new apprenticeships. The levy will support all post-16 apprenticeships in England, and will provide funding that each employer can use to meet their individual needs.

For more information on apprenticeships, see Practice note, Apprenticeships: employment law implications.

(See HM Treasury: Summer Budget 2015, paragraph 1.269.)

For Practical Law's full coverage of the budget, broken down into practice areas, see Practical Law July 2015 Budget coverage.

For all HMRC and HM Treasury Budget materials, see Summer Budget 2015: HMRC and HM Treasury, Summer Budget 2015.