10 Changes from April 2016 which may affect you

10 Changes from April 2016 which may affect you

1. The National Minimum Wage will be increased to £7.20 per hour for those 25 or over.

2. The Personal Tax Allowance, the amount you can earn before paying income tax, will be increased from £10,600 to £11,000.

3. The Higher Rate Threshold will increase from £42,385 to £43,000.

4. The Employment Allowance will increase from £2,000 to £3,000.

5. To make it cheaper to employ young people, from April 2016 employers will not have to pay National Insurance contributions (NICs) for all but the highest earning apprentices aged under 25.

6. The new State Pension will be increased £119.30 from to £155.65 per week.

7. The income rise disregard in Tax Credit will be reduced from £5,000 to £2,500.

8. From April, the UK Government will be changing the Construction Industry Scheme (CIS) legislation for contractors and subcontractors. The CIS returns to be filed online only.

9. The Capital Gain Tax rates will be cut from 6 April 2016, but residential property will still be taxed at current rates. The higher rate of Capital Gains Tax will be cut from 28% to 20% and the basic rate from 18% to 10%.

10. The Dividend Tax credit will be replaced by a new £5,000 tax-free dividend allowance for all taxpayers.

 

More information you can find on the GOV.UK

 

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About Diana Hurta

Founder / CEO at DH Accounts & Legal Ltd.

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