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Wednesday, 23 March 2016 10:32

Budget 2016 Summary

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There was a lot covered in this years budget, in relation to small businesses.

Therefore, rather than adding reams of pages to this blog, I have prepared a detailed summary, by key area, here.

Throughout the guide we have included tips and ideas to assist you with effective tax and financial planning. However, it is important to understand that planning is an ongoing, year-round process.

Related items

  • Budget for Employers?
    The budget concentrated on financial matters but there were some important announcements which affect the employment of people.

    Living Wage

    The chancellor in today’s budget announced a new living wage to replace the minimum wage. It is set to be £7.20 per hour from April 2016 and to rise to £9.00per hour from 2020. There will no doubt be rates set for apprentices and people under 21. For information current minimum wage is £6.50 per hour

    Small employers will be able to claim a national insurance employment allowance of £3000 from April next year which is meant to ease the pain for them in paying higher wages
    Just to remind you of the following

    Auto Enrolment

    45000 companies are vesting this year next year it is anticipated to be 45000 per month. There is a capacity shortfall and you may experience difficulty if you delay too long. You will subject to fines if you do nothing. If you haven’t yet done please contact me it is not going away!

    Shared Parental Leave

    This has been in effect for children born after April 5th This new right allows mothers to give up maternity leave and instead share the unused portions with their partner who has responsibility for bringing up the child. This right has been extended to adoption. It is complex and hopefully the take up in industry and commerce will be small. If you having a discussion with a pregnant employee who is interested in pursuing this right please contact me.

    Zero Hours Contracts

    Please remember it is now illegal to put an exclusivity clause in these contracts employees on zero hours contracts will have the right to work for your competitors.

    Tribunal Fees

    The government has commenced a review which will not report before year end. In the meantime the current fee regime will remain in place.