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Upcoming changes for companies

Keep up-to-date with upcoming changes that the government have announced.

National Living Wage

From April 2016, individuals who are 25 or over shall be entitled to National Living Wage, which means they are entitled to an additional amount of 50 pence per hour on top of National Minimum Wage. [Find out more]

Workplace Pension Schemes

Starting in April 2016, the government have brought in a new law that means that employees, who are between 22 years old and state-pension age, shall be entitled to be automatically enrolled into a workplace pension scheme, which the company must contribute towards. [Find out more]

Corporation Tax Reductions

From 2010 to 2015 Corporation Tax has already seen a drop from 28% to 20%. The government plans to continue to drop this further to 19% in 2017 and 18% in 2020.

Annual Investment Allowance of £200,000 becomes permanent level

The annual investment allowance was put at a temporary level of £200,000, which has now become the permanent level. The allowance provides businesses with the ability to deduct the full value of certain items, such as equipment and machinery, up to the total amount of £200,000 from profits before being taxed. This shall assist businesses with cash flow as they are given tax relief when the items are purchased rather than over several years.

Employment Allowance Increase

From April 2016 onwards, businesses shall have their employer National Insurance bill cut by £1,000 while the Employment Allowance shall increase by £1,000 from £2,000 to £3,000.

This change shall allow businesses to employ 4 people on a full-time basis on the National Living Wage and not have to pay any National Insurance.

Insurance Premium Tax Increase

Starting in November 2015 the rate of Insurance Premium Tax was increased from 6% to 9.5%, following falling insurance prices.

Tax Relief Restrictions for Landlords

At the moment, individual landlords are able to take their costs, which includes mortgage interest, from their profit before they are taxed. As this benefits them over other home buyers the government are changing the tax relief for wealthier landlords at 40% and 45%. By April 2020 the tax relief shall be restricted to 20% for individuals.

Also the so called ' wear and tear allowance' shall be replaced to a system that only allows landlords to claim tax relief when they replace furnishings.

 


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