The March 2017 Budget has confirmed the following changes that will affect your payroll from April 2017:
* The personal allowance increases from April 2017 from £11,000 to £11,500 making the standard tax code 1150L.
* The 20% basic tax rate band increases from April 2017 £32,000 to £33,500 per annum.
* The lower earnings limit for National Insurance increases from £112 per week to £113 per week or from £672 per month to £680 per month.
* Statutory sick pay increases from £88.45 to £89.35 per week.
* Statutory Maternity/Paternity/Adoption pay increases from £139.58 to £140.98 per week.
* The National Living Wage for those 25 years old and over increases in April 2017 from £7.20 to £7.50 per hour.
* The National Minimum Wage rates increase in April 2017:21-24 year olds from £6.95 to £7.05;18-20 year olds from £5.55 to £5.60;16-17 year olds from £4.00 to £4.05;apprentice rate from £3.40 to £3.50.
* The Apprenticeship Levy starts April 2017 for businesses whose monthly pay bill is £250,000.
* Tax-Free Childcare will be gradually rolled out from April 2017 for children under 12. If you qualify, the 20% relief of costs of childcare up to a total of £10,000 per child means it will be worth a maximum of £2000 per child.
* The VAT registration threshold increases on 1st April 2017 from £83,000 to £85,000.
* Corporation tax rate reduces from 20% to 19% for the financial year beginning 1st April 2017.
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