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2015: Looking Ahead

30 Dec 2014

A number of important changes come into effect with the new financial year on 6 April. Here we take a quick look at a few of the key points:

Increased pension flexibility has been proposed to allow members of defined contribution pension schemes access to their retirement savings as a lump sum, without having to buy an annuity.

Employers will no longer be required to pay Class 1 secondary National Insurance Contributions (NICs) for employees under the age of 21, up to the Upper Earnings Limit.

The tax-free personal allowance for individuals born after 5 April 1938 will be increased to 10,500. The basic rate tax band limit will be reduced to 31,785, and the starting rate will be 0% on savings of up to 5,000.

The Premium Bond investment limit, raised to 40,000 in 2014, will be raised to 50,000.

In a move to simplify corporation tax, the main rate will be reduced and unified with the small profits rate giving a unified rate of 20%.

These are just a few of the major changes coming in the new financial year. Check with us to stay up to date on the biggest shifts in legislation in the coming weeks and throughout 2015.