2015 budget ANNOUNCEMENT
Wednesday 18th March 2015
Today Wednesday 18th March 2015, Chancellor of Exchequer George Osborne presented the Budget Statement to the House of Commons, outlining the state of the current economy and proposals for changes to taxation. George Osborne opened the 2015 Budget with “Today I report on a Britain that is growing, creating jobs and paying it’s way.” with the government making “different decisions… and it worked. Britain is walking tall again.” The question we are all asking is, how will the changes effect us?
travel and subsistence relief to be restricted
In the Budget 2015 document, the government stated its intention to restrict travel and subsistence relief for workers engaged through an employment intermediary, such as an umbrella company or a personal service company and under the ‘supervision, direction and control’ of the end user. This, according to the document, will take effect from April 2016 following a consultation on the detail of the changes. The document talks about restricting rather than abolishing tax relief, however, detail is needed but is sorely lacking at the moment. We will of course keep everyone updated as to the progress of any such consultations as and when they occur. For the full Budget review please see the link below: CLICK HERE
NATIONAL MINIMUM WAGE RISE
There will be a rise in National Minimum Wage from October this year to £6.70 for over 21’s, an increase of 20p an hour, benefiting over 1.4 million workers across the UK.
- £6.70ph for over 21 year olds (20p increase)
- £5.30ph for 18-20 year olds (17p increase)
- £3.87ph for under 18 year olds (8p increase)
- £3.30ph for apprentices (57p increase)
personal tax allowance
Workers personal allowance is due to increase to £10,800 next year and further increase to £11,000 for the 2017/18 tax year. Once in place workers in the UK will be able to earn £11,000 per year before paying Tax.
hIGHER TAX BAND RAISED
Alongside the increase at the bottom end of the pay scale, George Osborne has also announced a rise in the Higher Rate Tax Threshold from £42,385 to £43,300 by 2017/18.
severn toll rates cut
Aimed to help ‘White Van Driver’s’ it has been confirmed that the toll rates for the Severn Crossing from 2018 will be reduced. George Osborne stated “Severn crossings are a vital link for Wales – we will reduce the toll rates from 2018 and abolish the higher band for small vans and buses.”
help to buy isa’S
An ISA will be introduced for ‘First-time Buyers’ to help save for a deposit. The Help to Buy ISA’s mean that for every £200 saved by the individual the government will top this up with an additional £50.