In April 16 the government has plans to make numerous budget changes that will affect both individuals and businesses.
One of the main changes that shall be implemented is the introduction of the workplace pension scheme, which shall entitle those of 22 years to state pension age the right to be automatically enrolled into a workplace pension scheme that the government, employer and employee must contribute into.
Another of the government's large budget changes to be introduced within April 16 is the commencement of the National Living Wage, which shall mean that those of the age of 25 years or older shall be entitled to an additional 50 pence on top of National Minimum Wage.
 |
Corporation Tax |
Following the reduction of corporation tax from 28% in 2010 to 20% in 2015 the government is planning on continuing to further drop corporation tax in 2017 to 19% and eventually down to 18% in 2020.
 |
Annual Investment Allowance |
Following the temporary level for the Annual Investment Allowance of £200,000 the government has announced that the level shall now become permanent. The allowance allows companies to deduct the value of a qualifying item from the company's profits before tax.
 |
National Insurance and Employment Allowance |
Starting in April 16 the government have minimised employer National Insurance by £1,000 while Employment Allowance shall be increasing by another £1,000 from the current amount of £2,000 to £3,000. This latest change shall enable businesses to employ a total of four individuals within their company on a full-time basis on the new National Living Wage without the need to pay any National Insurance.
 |
Tax relief changes for landlords |
The government have announced plans to change the ability of landlords claiming costs from their profit before they are taxed. As landlords have been allowed to count mortgage interest as a cost this has benefitted them over other home buyers within the UK so there are plans to restrict landlord tax relief for the more wealthy landlords for the existing relief of 40% and 45%. The government shall be aiming to reduce the tax relief down to 20% by April 2020.
Also, starting in April 16 the landlord's 'wear and tear allowance', which is currently in place to reduce tax that landlords must pay, will be replaced with an alternative new system which will only provide tax relief when furnishings are replaced. |
