How Will the Budget 2016 Affect Me?

Budget 2016

With the start of a new tax year, comes a brand new Budget and 2016 was no different. The Chancellor of the Exchequer, George Osborne, gave his Budget to parliament last month, and like most years, his 8th Budget was filled with changes to delight the masses, whilst other changes would no doubt take some adjusting to. How the Budget affects each individual will of course vary, but how will recent announcements affect you?

Savings

The Cash ISA has been the leading product for tax-free savings for as long as we can remember but the new Budget brings another ISA product that could unlock a range of benefits. The Lifetime ISA is a tax-free savings accounts designed for those aged 40 or under which gives you a 25% bonus if you purchase a property or when you enter retirement. All you have to do is save £4,000 per year and the government will top that up with a further £1,000.

The Help to Buy ISA has also been introduced to help first time buyers saving for that all-important deposit.

Everyday essentials

From soft drinks to petrol, the Budget brought a string of changes in this area. The sugar tax has been big news in recent months thanks to a campaign for change from celebrity chef Jamie Oliver, and it seems the government has listened. Now soft drink manufacturers must pay a sugar tax and as a result some may pass on the extra cost to their customers meaning pricey treats for us. Petrol however will remain affordable as the Chancellor continues to freeze fuel duty.

Business

The corporation tax change has been welcomed by businesses across the region and beyond. Corporation tax will be cut to 17% by April 2020, whilst the business rates threshold will be increased to £15,000. Small businesses are set to benefit again as most will pay no business rates from April 2017 resulting in an annual saving of £6,000. Insurance premiums for both commercial and residential properties on the other hand are set to increase in order to raise essential funds for flood defences.

As a leading provider of professional accounting services assisting businesses big and small throughout the North East of England, we keep up to date with the latest changes to government legislation so you don’t have to. Start your journey to better bookkeeping and accounts management today by calling 0191 251 7599 or emailing info@hurrenaccountants.co.uk.