Sunday, 2 April 2017

This is how new laws taking effect from April 2017 will affect families and businesses.

New law and household income

As the new tax year rolls in, the British government has come up with several new policies that could have both positive and negative impacts on different individuals and organisations.

So many people are going to be affected by the new law which has to do with their household income and cost of living.

Below are some of the various new legislations:
Rise in minimum wage is one that almost all workers in the UK had always looked forward to see, as the country’s national minimum wage is billed to be increased to £7.50 per hour. This is seen in deferent quarters as a means of achieving the government’s desire to increase minimum wage to £9 per hour by 2020.

Also from April 2017, only cars which are 100% electric with zero-emission will be given road tax exemption, in order words all those wo bought low-emission vehicles with aim of avoiding the said tax may be disappointed with the new rule in place.

Starting from April sixth, consumers could also earn up to £500 tax-free allowance for employer-funded pension advice. When this is joint together with the Pensions Advice Allowance, , people could as well get up to £1,000 worth of advice.

Good news for nursing mummies and daddies as well, with the new increase of the weekly statutory maternity, paternity, adoption and shared parental pay goes up to £140.98, while statutory sick pay will also be increased to £89.35.

Another pay that will see a rise, is the statutory redundancy payments which is going to now be £489, which means a £10 rise, while the highest redundancy pay will also rise from £14,370 to £14,670.

Sad news for some companies as the government introduces a new levy on businesses to fund an immigration skills charge which takes effect from April. A policy which will help the government to raise about £3bn annually  from firms with a salary bill of over £3 million per year, in order not to let it affect smaller businesses.

Such monies when collected will be channelled to any business that shows the willingness offer apprenticeships and on-the-job training for over 16s, in order to make it easier to get paid while learning a new skill this year.

The government is also coming up with a new immigration skill charge from April 6, as a means to "reduce Britain’s reliance on migrant workers".  This fee will be imposed on firms that engages the services of migrant workers in skilled roles which will cost big businesses £1,000 annually, while charities and small establishments will be charged at the rate of £360.

Also coming into effect from April 28 is the new Tax-Free Childcare plan for parents of children within the age bracket of less than two years.

The Government also said of its readiness to cut childcare costs for working families by up to £2,000 per child, or £4,000 for disabled children annually. A scheme, which has the possibilities of being rolled out to children below 12, or under 17 for young people who have disabilities.


Also starting from September, parents who have 3 and 4 year olds in England could also be allowed to apply for a 30 hours’ free childcare offer worth about £5,000. 

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