Tax changes coming into effect for 2016
The following is a list of some on the key personal and business tax changes coming into effect from April 2016.
Further details of the 2016 Budget announcements are available from our Budget 2016 Summary of the Facts as well as www.gov.uk
Increase to Personal Allowance
The personal allowance has increased to £11,000. This means that anyone on an income of £11,000 or less won't pay income tax.
Increase to Marriage Allowance
The tax free amount that can be transferred to a husband, wife or civil partner is increased to £1,100
Savings Allowance
£1,000 personal savings allowance (or £500 for higher rate tax payers) is being introduced for income that people earn on savings. This means that for basic rate taxpayers, they will pay no tax on the first £1,000 of their savings income.
Flexible ISAs
ISAs are being reformed to allow savers to take money out of an ISA and replace it later in the year without losing ISA tax benefits.
National Living Wage
A new national living wage of £7.20 an hour for workers aged 25 and over has been introduced.
A minimum wage calculator is available from GOV.UK
Employer National Insurance Contributions (NICs)
Employers will no longer pay employer NICs for apprentices ages under 25 who are paid less than £43,000 a year.
National Insurance
Businesses and Charities will have their employer National Insurance bill reduced by £1,000 as the employment allowance rises from £2,000 to £3,000.
Gift Aid Small Donations Scheme
Charities will be able to claim a 25% government top up through the scheme on up to £8,000.
Whilst every effort has been made by CavanaghKelly to ensure the accuracy of the information here, it cannot be guaranteed and neither CavanaghKelly nor any related entity shall have liability to any person who relies on the information herein. Information given here is for guidance only. Detailed professional advice should be taken before acting on any information contained herein. If having read the guidance here, you would like to discuss further; a member of our team would be pleased to help you.