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Budget 2015 key points!

Budget 2015: Farewell to Self-Assessment!

The Budget 2015 announced the end to self assessment as we know it. It seems this will be replaced by a monthly online system, starting 2016/17, where the taxpayer will pay their tax the month after the income has been earned! Presumably phased in over a period, else taxpayers cash flow will be severely hit.

Tax free interest rate changes

From 6th April 2016 the first £1000 of interest received by 20% rate taxpayers will not have tax deducted. For 40% and 45% taxpayers the first £500 will be tax free.

Personal Allowance changes

2015/16                £10600

2016/17                £10800

2017/18                £11000

Changes to tax thresholds

From April 6th 2017 the 40% tax threshold will kick-in at £43,300.

Changes to National Insurance

  • Class 2 to be abolished in the next parliament. Could this be the start of the end for National Insurance? Don’t be surprised if National Insurance disappears completely by 2020.
  • As from 6th April 2015 employers with employees under 21 will not have to pay Employers NIC until their earnings exceed the Upper Earnings Limit (£42380).
  • From 6th April 2016 this is upped to apprentices under 25.

Film Tax Relief

This has seen an increase to 25% as from 1st April 2015.

Duty changes

  • The fuel duty increase scheduled for September has been scrapped.
  • 1% off of beer duty, and 2% off of whiskey, wine and cider.

Marriage/Civil Partnership Allowance

As from 6th April 2015 10% of a Personal Allowance may be transferred to a spouse/civil partner. So for 2015/16 £1060 can be transferred.

However this can only be done for 20% taxpayers. So if you are a 20% taxpayer and your other half is below the tax threshold, they can transfer the £1060 to your allowance saving £212 pa.

Do you think that this could apply to you and your partner? You should let HMRC know here.

Need some further explanation? Give us a call on: 020 7717 8474 or email us at: info@markcarr.co.uk