Phone: 01206 273908
Email: info @

Budget 2015 (July)

piggy-bankHighlights from the July 2015 post election budget



  • Personal tax allowance, when you start paying tax, to rise to £11,000 next year and to £12,500 by 2020
  • The starting point for 40% tax will rise from £42,385 up to £43,00 next year
  • Fuel duty has been frozen again
  • Insurance premium tax will be increased to 9.5% in November
  • Changes to vehicle excise duty (VED) on new vehicles, so more new vehicles pay this tax, with money raised pay for new roads
  • Simpler 3 band VED system introduced in 2017 with most cars paying £140 in the standard band
  • From April 2016 dividend tax credits will be scrapped and replaced with a simple £5,000 allowance



  • National insurance employment allowance to be increased to £3,000 for small firms in 2016
  • A new Living Wage to be introduced in April 2016 for workers aged over 25, starting at £7.20 an hour rising to £9 by 2020
  • Introduce an apprenticeship levy on large firms to further encourage an increase in apprenticeships
  • Mortgage interest tax relief for buy-to-let owners will be restricted to the standard rate of income tax, to be introduced over four years from April 2017
  • HMRC have a further £750M to help them combat tax evasion
  • Corporation tax to be reduced to 19% in 2017 and down to 18% in 2020


Limited Companies

  • Removal of divident tax credits in April 2016 may impact company directors and independent professional
  • Consultation on new restrictions on travel and subsistence for one person limited companies and 'umbrella' companies
  • HMRC have been asked to make IR35 rules 'more effective' and to increase it's tax yield with a target of £400M
  • One person limited companies will no longer qualify for the employment allowance whilst qualifying businesses will see this increase to £3,000


  • New £175,000 inheritance tax allowance will be introduced in 2017 allowing homes of up to £1M to be passed to children or grandchildren tax free.  Estates of more than £2M will see this allowance taper away
  • 18 to 21 year olds will no longer have an automatic entitlement for housing benefit, to try and encourage either earning or learning
  • Up to 30 hours per week free child care for 3-4 year olds from 2017



  • Working age benefit will be frozen for the next four years to allowing earning growth (working salaries) to catch up again
  • Local councils be be empowered to change their own Sunday trading laws
  • Annual household benefit cap to be reduced to £23,000 in London and £20,000 for the rest of Britain


facebook-sml linkedin-sml


FSB very smallaat logo very small 2Office: 01206 273908 | Email: info @

Copyright © 2006--2018 Taylor and Davis Ltd. All Rights Reserved

View our cookie policy


Licensed by the Association of Accounting Technicians to provide accounting services in accordance with license no.1797,details

available at the company address.