Summer Budget 2015 – what’s changed?
The Chancellor of the Exchequer has, this week, presented the first Budget of the new parliament and the first Conservative Budget since November 1996.
A new report has shown that businesses are struggling to fill vacancies, so the Chancellor was challenged to produce a Budget that meets the demands of the UK economy.
Here are the changes and what you need to know about the Budget:
National Living Wage:
- New National Living Wage for workers aged 25+ by introducing a new premium on top of the National Minimum, Wage.
- From April 2016, the National Living Wage will be £7.20 – set to rise to £9 by 2020
- From April 2016, National Insurance Contribution Employment Allowance will increase from £2000 to £3000 a year.
- As part of a drive to clampdown on tax avoidance, HMRC have published a new consultation on restricting the use of travel and subsistence by employment intermediaries, including personal service companies – We have until 30th September to respond.
- The main proposal of the consultation is“to remove tax relief for ordinary commuting (in general, home-to-work travel and subsistence expenses) for workers who are: supplying personal services; engaged through an employment intermediary (including umbrella companies, certain employment businesses and personal service companies); and, subject to (or to the right of ) the supervision, direction or control”
Apprenticeships and Skills:
- In order to fund the Government’s planned 3 million new apprenticeships, an “apprenticeship levy” is to be introduced on all large firms
- The Budget also announced a new ‘youth obligation’ from April 2017 for all 18-21 year olds who are not in work or education. The government will offer an intensive regime of support and after six months a young person would be expected to apply for an apprenticeship, traineeship, gain work-based skills or go to a mandatory work placement to get the skills they require for employment.
Source : www.rec.uk.com/