2016 Budget Summary

The 2016 budget is finally here, with some interesting features that will affect the payroll industry read on to find out more.

Some key points...

Benefits such as pension saving, childcare and other schemes will still continue to benefit from income tax and National Insurance relief when provided through a salary sacrifice arrangement.

A Lifetime Allowance reduction from £1.25m to £1m and the restricted annual allowance will be in place from 6th of April 2016.

An increase from £150 to £500 will be in place for Employer Financed Pension advice from April 2017.

Other points...

• Personal Tax Allowance will increase from £11,000 to £11,500 from April 2017
• The Higher Rate Tax Threshold becomes £45,000 from April 2017
• Class 2 NICs for the self-employed will be end from April 2018

View the budget documents here.