KEY POINTS FROM THE SUMMER BUDGET 2015
Wednesday 8th July 2015
“We have a job to do and we’re here to get on with it. …This will be a Budget for working people ”
BREAKING NEWS!!!
“I AM TODAY INTRODUCING A NEW NATIONAL LIVING WAGE”
The main focus of the Budget was left until the end when Osborne spoke of moving Britain from a low wage, high tax economy to a higher wage lower tax society.
Osborne’s answer to this is to introduce a new compulsory ‘National Living Wage’ to all workers over the age of 25. This will start at £7.20 per hour from April 2016 and is scheduled to increase to £9 by 2020. It is estimated this rise will benefit an estimated 2.5 million people by an average of £5,000 across the five year period.
The reaction within Parliment to this change was outstanding with Osborne stating:
“Because let me be clear: Britain deserves a pay rise and Britain is getting a pay rise.”
£11,000 tax-free personal allowance
At the elections, the Conservative party promised to lock any increase on Income Tax, National Insurance and VAT next the next five years, with the parties aim to cut taxes.
In the Summer Budget Osborne stated
“The best way to support working people is to let them keep more of the money they earn.”
With this in mind they have confirmed a rise in the Tax-free Personal Allowance to £11,000 next year. Allowing workers to earn £11,000 before paying income Tax. This is the first step in reaching the end goal of £12,500. We will also see a rise in the higher rate threshold increasing to £42,000 from next year.
TRAVEL & SUBSISTENCE EXPENSES
The on going questions surrounding Travel & Subsistence are still yet to be answered, with a further consultation taking place and the closing date for comments to be the 30th September 2015.
This consultation will involve HM Revenue & Customs, holding roundtable stakeholder events, with leading industry bodies having been invited to attend. This consultation will explore the views on the plans to remove home-to-work travel and subsistence Tax relief, where an individual is working through an employment intermediary and is working under supervision, direction or control of any person.
CLICK HERE – to view the 31 page consultation document.
tax evasion, avoidance and aggressive tax planning
Osborne promised to continue to tackle Tax evasion, avoidance and aggressive Tax planning, within the Tax system, finding an annual saving of £5 billion. With an £750,000,000 investment into the HMRC to increase the capacity to tackle Tax Fraud, Offshore trusts and Businesses of the hidden economy, along with changes to the law, Osborne commented :
“These people should have nowhere to hide.”
FREE CHILDCARE
Osborne also focused on Childcare, confirming that from September 2017 all working parents of 3 & 4 year olds will receive 30 hours a week of free Childcare.
“Once again, a promise made: a promise delivered.”