The items announced in Budget 2015 that directly affect payroll are:
- Top Rate of Tax – Decrease in top rate of tax from 41% to 40%
- Single Person – Increase in SRCOP (Standard Rate Cut-Off Point) from 32,800 to 33,800 for a single person
- Married ONE Income – Increase in SRCOP from 41,800 to 42,800 for a single earner
- Married TWO Incomes – Increase in SRCOP from 41,800 to 42,800 on FIRST income and from 23,800 to 24,800 on the SECOND income
- USC Bands – widening of the lower thresholds
- USC Rates – reduction in lower threshold percentages
- USC New Rate – 8% on all earnings in excess of 70,044
- USC Exemption Threshold – Increase from 10,036 to 12,012
- Emergency Rate USC – Increase from 7% to 8%
- Emergency Basis of Tax (Cut-Off) – also increased as per single person allowance SRCOP (applies for first two months)
So what does this all mean for you and your employees? What type of queries can you expect to get?
Over the next few weeks we are putting together 1-2 page illustrative document (for our clients BUT also will be available for download here) on what it really means, what questions / queries you can expect and how to answer them.
The Budget only tells you what is happening; we’ll show you how it happens. Watch this space.
All the best,
The Team at Jefferson