BUDGET CHANGES ANNOUNCED 8th JULY 2015

MINIMUM WAGE RATES

New Minimum Living Wage Rate for over 25s will be introduced from April 2016 of £7.20 per hour.

The National Minimum Wage Rates (previously announced) will apply from October 2015;

Adult Rate (21-24) will rise to £6.70 per hour (from £6.50)

18 -20 year olds will rise to £5.30 per hour (from £5.13)

16-17 year olds will rise to £3.87 per hour (from £3.79)

Apprentice Rate will increase to £3.30 per hour (from £2.73)

TAX ALLOWANCES

Personal Allowance to rise to £11,000 from April 2016 (from £10,600)

40p threshold to rise to £43,000 from £42,385 with effect from April 2016.

EMPLOYMENT ALLOWANCE

The ‘Employment Allowance’ which reduces Employers Class 1 National Insurance Contributions by up to £2,000 each year will continue in the 2015/16 tax year. From April 2016 the allowance will increase to £3,000 for small businesses. Check eligibility at www.hmrc.gov.uk/nicsemploymentallowance