The Finance (No 2) Act 2015 passed through Parliament in December 2015.
This bill puts into law many of the measures announced by the Chancellor in his Budget and Autumn Statement speeches.
Important areas which were clarified:
- the annual investment allowance of £200,000 from 1st January 2016.
- tougher rules tackling offshore tax evasion will be introduced.
- large businesses will have to publish their tax strategies.
The national living wage (NLW) of £7.20 an hour for workers aged 25 and over will come into effect on 1st April 2016.
The national minimum wage will continue to apply to all other eligible workers.
Although April may seem like a long way off, there are steps employers can take now to ensure they comply with the new rates. These include:
- Finding our which staff are eligible for the new rate.
- Updating your company payroll in time for 1st April 2016.
Early highlights most likely to affect our clients – further considered comment to follow in coming days.
Introduction of a new national living wage for all workers aged over 25, starting at £7.20 an hour from April 2016 and set to reach £9 by 2020 - giving an estimated 2.5 million people an average £5,000 rise over five years.
Low Pay Commission to advice on future changes to rate.
Inheritance Tax threshold will be increased to £1m from 2017.
