Budget 2016 – A short overview
Here are a few highlights from the budget which might affect your business:
- The tax-free Personal Allowance is to rise from £10,600 in 2016 to £11,000, and will increase further to £11,500 in April 2017
- The threshold that individuals start paying 40p tax will rise from £42,385 to £43,300 in 2016 and up to £45,000 in April 2017
- Class 2 National Insurance contributions for the self-employed to be scrapped
- Petrol duty will be frozen, saving motorists £75 a year and will have been forzen now for 6 years
- New threshold for small business rates to increase from £6,000 to £15,000
- Corporate Tax to decrease to 17% by 2020
- New tax free allowances for “micro entrepreneurs” who rent their homes or sell services through the internet.
- Veterans will be able to keep payments from war pensions rather than using this to pay for social care.
- New tax relief for museums and galleries will be introduced and more funding to protect from flooding.
- A longer school day for 25% of secondary schools – they will stay open until 4.30pm and offer a wider range of activities for pupils.
- From 2018, termination payments over £30,000 will be subject to employer’s national insurance contributions (under £30,000 is currently free of tax).
Don’t forget to look out for our new 2016/17 Tax Fact card. You can pre-register for your copy by clicking here.