Jul 2015
8
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.
