In his attempts to reduce the UK debt mountain, George Osborne has made inroads into a multitude of basic tax reliefs. Many significant changes are due to be made from 6 April 2016.
At present, shareholder directors of small companies have enjoyed the use of a perfectly legal strategy that minimises National Insurance costs by paying themselves a reduced salary and the balance of their remuneration as dividends.
A major loss of tax relief for this group is the remorseless reduction in the amount of tax relief that can be claimed for pension contributions.
Landlords of furnished, residential property will likely see an increase in their tax payments when the present 10% wear and tear allowance is replaced by a more restrictive replacement cost relief from April 2016.
From April 2016, all workers aged 25 or over must be paid the new National Living Wage of £7.20 per hour.