
Summer Budget 2015: A 500-word summary for the UK business community
Working people aged 25 and over will be recipients and it will start from April 2016 at the rate of ?7.20. George Osborne added that the Low Pay Commission would be recommending future rises that achieve the government’s objective of reaching 60 per cent of median earnings by 2020. That is the minimum level of pay recommended in the report to the Resolution Foundation by Sir George Bain, chair of the Low Pay Commission. There has been a mixed reception to the announcement, with some welcoming the change but others suggesting problems remained ? particularly for small businesses. Iain McCluskey, tax partner at PwC, said: ?Whilst many lower paid taxpayers will have been pleased with the slightly increased minimum wage, now rebranded as the ‘living wage’, the lack of substantial earnings limit leaves many of the poorest employees outside of the income tax system but still liable for NIC.? Guy Ellison, head of UK equities at Investec Wealth & Investment, said: ?National living wage will see an 11 per cent uplift from ?6.50 to ?7.20 next April for those on the minimum wage, weighing most heavily on the biggest employers such as retailers, leisure and support service companies.? Read more from our summer Budget commentary:- George Osborne says tax dodgers have ?nowhere to hide?
- George Osborne adds more detail to Northern Powerhouse plans
- George Osborne permanently fixes Annual Investment Allowance at ?200,000
- Cut in corporation tax welcomed by British businesses
- Apprenticeship levy so firms ?get back more than they put in?
- Roads Fund introduced as part of the plan to boost productivity
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