Monday signals the start of the new 2015/2016 tax year with many changes coming into force. Yesterday, April 1st, was also significant for businesses. Here is a quick rundown on all the taxation updates:
Tax-Free Personal Allowance raised to £10,600.
Another £600 pounds added to the personal allowance from last year. Should save a basic rate taxpayer £150 over last year.
Marriage Tax Allowance
Transferable tax allowance for married couples or civil partnerships. Up to ten percent of the personal allowance can be transferred to partners where both are basic rate taxpayers.
Starting Rate For Savings Now Tax Free
Up to £5,000 of savings interest income now tax free as long as earnings are below £15,600.
Corporation Tax For All Business Sizes Now 20 Percent
The Government promised to bring the UK corporation tax rate down to a level lower than any other G20 nation and it has. From yesterday, all business pay a flat 20 percent rate, down from 28 percent, regardless of size.
Business Rates Relief Extended For The High Street
£1,000 discount for retail establishments raised by £500 to £1,500. Includes shops, pubs, restaurants and cafes that have a rateable value of less than £50,000.
Children's TV Production Tax Relief
25 percent tax relief for producers of Children's programming.
The diverted profits tax comes into action. Multinational companies who move profits offshore to avoid paying tax in the UK will be targeted.
Employers Hiring Under 21's To Get NIC Savings
No more National Insurance Contributions need to be made by employers for employees under 21 years old.
NIC Rebates For Care and Support Employers
Claim £2,000 off Employers NIC bills for hiring a care and support worker.