Budget 2015

With a new Conservative parliament, comes a new budget to coincide. So what will the new budget mean for you and your business …

  • Firstly, the National Minimum Wage for over 25’s is set to rise to £7.20 per hour from April 2016.

  • National Minimum Wage will then increase to £9 an hour by 2020, as part of the Government’s plan to provide a ‘living wage’ for all workers.

  • The tax free Personal Allowance will increase to 11,000 in 2016/17. This change means that since 2010, a typical taxpayer is to be £905 better off per year.

  • The Personal Allowance will then rise to £12,500 a year by 2020, and it will be introduced that from this level those working 30 hours per week on National Minimum Wage will pay no income tax.

  • The higher rate tax threshold will increase to £43,000 in 2016-17.

  • Corporation Tax rates are set to be cut to 19% in 2017, and then to 18% in 2020.This has already been cut from 28% to 20% since 2010, and these newer rates by 2020 will benefit more than 1million businesses.

  • Employment Allowance will rise to £3000 from April 2016, which means that businesses National Insurance bills will be cut by a further £1000 per year. Next year this means that a business can employ four full time employees on Minimum Wage, yet have no National Insurance to pay.

  • As for dividends, you will now have to pay tax on any didvidend income over £5000. Basic Rate Tax payers will be required to pay 7.5% on their dividends and Higher Rate Tax payers 32.5%.

If you would like to know more and need any advice on the new budget plans, then contact Kayleigh on 07525 421 454 or at Kayleigh@darceyandbateaccountants.co.uk.

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