This month is the month that a number of changes will come into effect. The start of the new tax year often brings changes and this year is certainly no exception. Here is a quick roundup of the changes which could have an impact on our partner agencies and our contractors.
Wages for lower paid workers are on the rise this month, the National Living Wage and the National Minimum Wage have both increased. The cost of living has been increasing steadily so the 4% increase in the NLW will be welcomed by those on lower rates of pay. You can find out more about these increases here.
IR35 changes for public sector workers
If you are a recruiter supplying contractors to the public sector or a contractor who undertakes such contracts within the public sector then you are probably already well aware of the changes to IR35 for public sector workers. You can read more about the IR35 changes here. At Sterling, we are experienced in dealing with IR35 so if you have any questions then do get in touch and one of our team will be happy to help.
The amount that can be earned before paying income tax has risen with the start of the new tax year from £11,000 to £11,500. The threshold for higher-rate earners has gone up from £43,000 to £45,000. (This is with the exception for workers in Scotland, where the threshold for earned income has been frozen at £43,000.)
Other changes which have come into effect this April include:
A change in car tax rules and emission bands. The changes mean that unless you are buying an electric car you almost certainly pay more for a car purchased after 1st April 2017.
An increase in the ISA allowance. Good news for savers, the ISA allowances have increased to £20,000 for this tax year. The LISA (Lifetime ISA) is also new for this year.