Jul 2015


UK Emergency Budget

Chancellor George Osborne has delivered his emergency budget, setting out the new Conservative government’s plans for the nation’s finances. So here are the key points for payroll.

- A compulsory national living wage for working people aged 25 or over will be introduced in April 2016, set at £7.20 an hour and rising to £9 by 2020.

- The National Insurance Employment Allowance for small firms will be increased by 50% to £3,000 from 2016.

- The tax-free personal allowance will be raised to £11,000 next year. After that, the personal allowance will always rise in line with the National Minimum Wage.

- The higher tax rate threshold will rise to £43,000 next year.

Student maintenance grants will be abolished from 2016, replaced with loans, which people will start to pay back when they earn over £21,000. The maximum value will be increased to £8,200.

Posted byAnn TigheinPayrollPayroll Software