Tag Archives: budget 2015

National Living Wage

One of the most notable announcements in this years’ Summer Budget was the introduction of a compulsory National Living Wage.

The new National Living Wage of £7.20 per hour will take effect from April 2016, being a top-up of 50p per hour to the National Minimum Wage (£6.70) for those employees aged 25 and over. The National Living Wage is set to increase each year, eventually hitting £9.00 per hour by 2020.

You may want to consider the cost implications of this for your business and importantly you may need to be aware that employees cannot make a ‘salary-sacrifice’ which takes them below the hourly minimum (£7.20) and you therefore may need to reconsider any existing or future sacrifice arrangements.

While many have been calling for the introduction of a ‘Living Wage’ for some time, it’s important to recognise the difference between the Chancellor’s’ newly announced National Living Wage and the Living Wage that is voluntarily paid by some employers.

The ‘other’ Living Wage that is talked about is calculated according to the basic costs of living in the UK by the Living Wage Foundation. There are two rates, a UK rate which is £7.85 and a London rate which is currently £9.15. Employers can choose to pay the Living Wage on a voluntary basis.

If you’d like any further information on the new National Living Wage, please don’t hesitate to contact us, enquiries@kelsallsteele.co.uk

Budget 2015

Highlights

  • Income tax personal allowance to rise to £11,000 by 2017
  • Pension lifetime allowance to fall to £1m from April 2016
  • New Personal Savings Allowance from April 2016
  • New Help to Buy: ISA for first time buyers
  • Rules on annuities to be relaxed from April 2016
  • Digital tax accounts to replace annual tax returns

Budget 2015 Summary

The Chancellor’s 2015 Budget contained some important announcements and confirmed a number of changes planned for the new tax year. Following this, we have put together a Budget Summary PDF which contains the latest tax and financial information, which we trust you will find useful.

There is also a handy Tax Data Card for 2015/16, giving details of all the allowances and limits you’ll need to know. You can download both the PDFs for free via the links below:

Our summary goes into more detail on all of the points raised in the budget, aimed to give you a clearer picture of the announcements and how the changes will affect you and your business. however, as always, if there is anything you would like to discuss, please do not hesitate to contact us on 01872 271655 or via email at enquiries@kelsallsteele.co.uk