The Chancellor had a little less “wriggle room” than was expected in this Budget leaving little scope for any dramatic changes in taxation. However, he usually comes up with something! As previously announced the personal allowance for income tax has been increased to £11,000 for this tax year and will increase to £11,500 in the next. The basic rate band increases to £32,000 meaning that higher rate tax becomes payable on income over £43,000.
A fairly neutral Budget for business if you ignore the previously announced introduction of “dividend tax”. Most of the good news related to the rates of corporation tax. The rate stays at 20% for 2016 but will drop to 19% from 2017 and will drop further to 17% from 2020. The first of the bad news related to loans to participators. In the past where companies made advances or loans to participators, which were not repaid within 9 months of the year-end, tax was due equivalent to 25% of the amount advanced.
The directors are delighted to announce that, as from 1 April 2016, Karen Szotek has joined the Board. Karen joined the practice 8 years ago and qualified as an ACCA in 2014. She has proven to be a great asset to the firm and will undoubtedly make a significant impact in the years to come.
We have prepared a simple introduction to workplace pensions for employees who are about to be enrolled. If you would like copies to send to your employees or would like any assistance with your workplace pension please contact Karen Szotek or any of our other directors who will be happy to help. In 2016 or 2017 your employer will be introducing a workplace pension scheme in accordance with the rules laid out by the Government and the Pensions Regulator.