March 16, 2016

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.

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About the author

Stuart Clough

Stuart (MCIPR) is a trained journalist, writer and marketer with ten years' experience in B2B, public sector and employee communications. A former marketing consultant and agency client-lead, Stuart is responsible for communications and content at Moorepay.