The budget covers a wide range of topics and the details can be complex. A list of key updates from the last Autumn Statement can be found here, and the 2016 Budget can be found here. Below we have listed the most relevant changes that may impact our clients.
National Living Wage - As of April 2016 a National Living Wage of £7.20 per hour for those aged over 25 will be introduced.
Personal Allowance - The amount you can earn before paying Income Tax is £11,000 in 2016-17, increasing to £11,500 in 2017-18. The higher rate allowance is £43,000, increasing to £45,000 in April 2017..
Dividends - The amount of tax you will pay on dividends changed in 2016-17, with dividends above £5,000 being taxed at 7.5%.
Corporation Tax - The main rate of Corporation Tax will reduce to 19% in 2017 and 18% in 2020.
Employment Allowance - The Employment Allowance increases by £1,000 to £3,000, reducing the amount of National Insurance your business will pay.
Landlords - Mortgage interest tax relief for landlords will be restricted to 20% by 2020. Wear and tear allowances will be withdrawn from April 2016.
The current tax rates for 2016-17 are as follows. If you would like to know more about tax and how it affects you please get in touch with us via the Contact Us section on the HOME page.
The current tax year runs from 6 April 2016 to 5 April 2017.
The standard Personal Allowance is £11,000. This is the amount you can earn before paying tax.
Basic Rate. 20%. £0 to £32,000. You will start paying this rate on income above £11,000.
Higher Rate. 40%. £32,001 to £150,000. You will start paying this on income above £43,000.
Additional Rate. 45%. Income above £150,000.
Note: For married couples. If your spouse earns below the £11,000 and your income is between £11,000 and £43,000 they can transfer up to £1,100 of their allowance to you and reduce your tax bill by £220 per year. Many aren't aware of this Marriage Allowance, it's easy to do. Look at the HMRC web-site and make the most of this allowance.
Over the years we have grown the business to over 400 clients, the vast majority being via recommendations. From this year all clients who recommend our services to others will receive a reduction in their bills as a way of saying "Thank You".
Later this year Bradleys will be celebrating 25 years of having offices in Hednesford town centre. We'll be having a celebration later in the year where all current and former clients will be welcome. Details to be announced!
We're pleased to welcome Andy Murphy into the business as an Apprentice. Andy is studying for his AAT qualifications at South Staffs College and is working here 4 days a week.
We are also enrolling Irene Hughes onto an AAT course, continuing to invest in our staff for the long-term benefit of Bradleys.
If the world of Social Media is confusing to you we'll help you get started and point you in the right direction, along with promoting your business to our other clients and followers.
We're pleased to announce that Martyn and Sue's eldest son, Phil, has joined the business to ensure the continuation of Bradleys in the future.
The practice is now starting to send out newsletters to clients with important news updates. If you want to be included on the mailing list please email firstname.lastname@example.org
Please follow us on Twitter (@BradleysAndCo) or like us on Facebook and help spread the word among local businesses!
Please take a look at the following links for additional information relating to business, regulations and tax. The content and availability of these links is not under our control and the inclusion of these links is not necessarily a recommendation or endorsement of the view expressed.