From 6 April 2016, there will be a few changes for both individuals and businesses and we are sure you’ll want to hear about them!
There’s a lot of good news and changes coming up, one being that the personal allowance will increase from £10,600 to £11,000 – this means you could make some savings.
Some more good news, those who are married or in civil partnerships and were born after 6 April 1935, their allowance will increase from £1,060 to £1,100.
If you are fortunate to receive dividends as a director of a Small or Medium Sized Enterprise (SME), unfortunately the 10% tax credit will be abolished and instead a £5,000 tax free dividend allowance will be introduced.
Another change which that will come into effect is, in the event dividends increase above the allowance, there will be tax of 7.5% (basic rate), 32.5% (higher rate) and 38.1% (additional rate) respectively.
Not good news, but it isn’t really bad news; individual basic rate payers who receive dividends of more than £5,001 will need to complete a tax return.
Moreover, individuals will have their Individual Savings Account (ISA) subscriptions remain the same at 15,240 for this tax year.
It’s not just individuals that have something to cheer about, businesses will have something to cheer about including a notable increase on the Employment Allowance which will increased from £2,000 to £3,000 per year.
There is also an Apprentice Upper Secondary Threshold (AUST) for under 25’s of £827 for employers to access.
If you want to know any more notable changes coming up this year, contact us on info@loftusstowe.com or call 01909 512 120.