Protect your personal
your personal allowance
of £11,000 is reduced by
50p for every pound your
income is over £100,000.
If you can reduce your
income below £100,000,
e.g. by making a pension
contribution or charitable
gift, you should benefit
from the full allowance.
16 MARCH 2016
Income tax and National Insurance contributions
The personal allowance will increase to £11,500 and the higher
rate threshold will rise to £45,000 for 2017/18. The National
Insurance contribution (NIC) upper earnings limit will also
increase to remain aligned with the higher rate threshold.
Employment allowance – employing illegal workers
One year’s employment allowance (worth up to £3,000 of NICs in
2016/17) will be removed from employers who are charged civil
penalties by the Home Office for employing illegal workers from
Property and trading allowances
From April 2017 there will be a new £1,000 allowance for
property income and also a £1,000 allowance for trading income.
Individuals with property income or trading income within this
allowance will no longer need to declare or pay tax, and they can
choose to pay tax on the excess income over the allowance rather
than calculate their actual profit.
From April 2018, employment termination payments over £30,000
liable to income tax will also be subject to employers’ NICs.
Restriction on landlords’ interest relief
The phased restriction of tax relief on interest payments by
residential property landlords will start in April 2017 as already
legislated. Finance Bill 2016 will make some clarifications and
amendments to ensure it operates as intended. So beneficiaries
of deceased persons’ estates will be entitled to the basic rate tax
From April 2017 there will be an exemption of £100,000 (not
£50,000 as suggested in the 2015 Autumn Statement) for employed
sportspersons on income from sporting testimonials that are not
contractual or customary.