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Summer Budget Overview 2015

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Yesterday saw Chancellor, George Osbourne give the Summer Budget 2015. In his opening statement, George Osbourne explained that this is a Budget that puts security first and recognises the hard work and sacrifice of the British people over the last five years; it will be a budget for working people.

 

Below are 8 key points for businesses to be aware of from yesterday’s budget:

  1. A compulsory living wage of £7.20 an hour to be introduced from next year with it set to increase to £9 an hour by 2020. This will only be for over 25’s
  2. An increase in Employment Allowance will rise from £2,000 to £3,000 a year
  3. There will be an increase in the tax-free Personal Allowance which is currently £10,600 but is look to increase to £11,000 as of April 2016
  4. The Annual Investment Allowance (AIA) has been set at £200,000
  5. Reduction in Corporation Tax to 19% in 2017 and then another reduction to 18% by 2020
  6. Fuel duty is to remain frozen this year
  7. The Dividend Tax Credit is to be replaced with a £5,000 Dividend Tax Allowance. This will mean that the first £5,000 of dividends taken by Company Directors will be tax free and then anything above this will be taxed at the basic tax payer rate of 7.5%, 32.5% for higher tax rate payers and 38.1% for additional rate taxpayers
  8. Corporation tax will be cut to 17% in 2017 and then further reduced to 18% in 2020

 

For further details regarding the budget please visit: http://www.telegraph.co.uk/finance/budget/11724370/key-points-summer.html

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