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George Osborne, Chancellor
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30 second guide to the 2015 Budget for HR professionals

by
18th Mar 2015
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Firstly, the good news: there is record employment in UK, with the jobless rate to fall to 5.3% this year.

Pay

Your contingent workforce

  • Annual paper tax returns to be abolished, affecting contractors and self-employed workers
  • Class 2 National Insurance contributions for self-employed workers to be abolished in the next parliament

Tax

  • 40p tax rate will start at £43,300 from 2017/18, up from £42,385
  • Personal tax allowance to rise to £10,800 in 2016, and £11,000 in 2017
  • National Insurance Contributions from employers to be abolished for under-21s from April, extended to young apprentices from April 2016

Employee benefits

  • From April 2015 trivial benefits-in-kind costing less than £50 will be subject to statutory exemption
  • From April 2016, employers will be able to collect tax on specific benefits during pay periods using payroll rather than using end-of-year reporting

Apprenticeships

  • Apprenticeship Vouchers to come in from 2017, which will give employers a say into how apprenticeships are funded

Pensions

  • Pension pot lifetime allowance to drop from £1.25m to £1m from 2016
  • Pensioners will be able to access their annuities – 55% tax charge abolished and tax applied at marginal rate

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