The UK Budget 2016: How the changes affect employees

H O W T H E C H A N G E S A F F E C TE M P L O Y E E S

W E A L T H W I Z A R D S . C O M

T H E B U D G E T 2 0 1 6 :

http://www.wealthwizards.com/

W H A T W A SA N N O U N C E D ?

L I F E T I M EI S A

S T A T EP E N S I O N R I S E

The 'Lifetime ISA’ aims to encourage more youngpeople to save for retirement. People who save into the ISA could benefit from an additional 25%bonus from the government

From April 2016, a new flat-rate pension will beintroduced of up to £155.65 per week for a singleperson (those who meet the criteria, see slide 8)

P E N S I O ND A S H B O A R D

The launch of a new digital pension dashboard by2019

An increase in the tax and National InsuranceContributions relief available for providing pensionadvice to employees from £150 to £500 from April2017

A D V I C E T A X& N I C R E L I E F



P E R S O N A LA L L O W A N C E

A rise in the tax-free personal allowance, from£10,600 to £11,000 in April 2016

T A X - F R E EI S A

The annual amount you can save in a tax-free ISAwill increase to £20,000 from April 2017



T H I S W I L L M E A NW O R K E R S C A N V I E W A L L

T H E I R R E T I R E M E N TS A V I N G S I N O N E P L A C E ,T A K I N G I N T O A C C O U N T

T H E F A C T T H A T Y O U N G E RP E O P L E A R E N O W

M O V I N G J O B S M O R EF R E Q U E N T L Y

T H R O U G H O U T T H E I RL I F E T I M E

B Y 2 0 1 9 , W E W I L L S E ET H E L A U N C H O F A N E W

D I G I T A L

P E N S I O ND A S H B O A R D



P E O P L E A G E D U N D E R 4 0W H O S A V E I N T O T H EL I F E T I M E I S A C O U L D B E N E F I TF R O M A N A D D I T I O N A L 2 5 %B O N U S F R O M T H EG O V E R N M E N T

+25%



F O R E X A M P L E , S A V E

P E R Y E A R A N DY O U C O U L D R E C E I V E A

£ 1 , 0 0 0 B O N U S F R O MT H E G O V E R N M E N T

£ 4 , 0 0 0



FOR EMPLOYERS, THE GOVERNMENT WILL INCREASE THETAX AND NATIONAL INSURANCE CONTRIBUTIONS RELIEF

AVAILABLE FOR PROVIDING PENSION ADVICE TOEMPLOYEES, FROM £150 TO £500 FROM APRIL 2017.

T H E F I R S T £ 5 0 0O F A N Y P E N S I O NA D V I C E R E C E I V E D

I S E L I G I B L E F O RT A X R E L I E F



A N E W F L A T - R A T EP E N S I O N W I L L B EI N T R O D U C E D I NA P R I L O F U PT O £ 1 5 5 . 6 5 P E RW E E K F O R A S I N G L EP E R S O N

T O R E C E I V E T H E F U L L A M O U N T U N D E R T H E N E W O P T I O N ,T H O S E R E T I R I N G F R O M A P R I L T H I S Y E A R W I L L N E E D T O

H A V E W O R K E D A N D P A I D N A T I O N A L I N S U R A N C EC O N T R I B U T I O N S , O R B E E N O N Q U A L I F Y I N G B E N E F I T S , F O R

3 5 Y E A R S



P E N S I O N E R S , A S W E L L A SW O R K E R S , W I L L B E N E F I TF R O M A R I S E I N T H E T A X -F R E E P E R S O N A LA L L O W A N C E . . .

£10.6KMARCH 2016

£11KApril 2016



+31%

T H E T A X - F R E E I S AA L L O W A N C E W I L L I N C R E A S E

F R O M £ 1 5 , 2 4 0 T 0 £ 2 0 KF R O M A P R I L 2 0 1 7



F O R M O R E A B O U T H O W W E C A N H E L PY O U R E M P L O Y E E S W I T H C O S T -

E F F E C T I V E A N D R E G U L A T E D A D V I C E ,F I N D O U T M O R E A B O U T P E N S I O N

W I Z A R D

W W W . W E A L T H W I Z A R D S . C O M



Economy & Finance

The UK Budget 2016: How the changes affect employees