Tax update: Good news for contractors

If you’re a contractor you should be smiling. HMRC have published the PAYE tax and Class 1 National Insurance contributions (NICs) for 2015 to 2016 and it looks like there might be a little more cash in your pocket from April this year.

HMRC-building

According to Gov.uk, if you fall under the new 1060L emergency tax number you will be around £10 better off each month thanks to a recent change in this coming year’s tax threshold.

However, the 40% tax rate bracket annual income has been lowered from £31,865 to £31,786, so higher earners won’t be benefiting.

If you’re worried about how the new tax-free allowances and thresholds will affect you, or if you want to make sure you are taking home as much pay as possible, speak to the 1st Contact Umbrella team.

We are fully complaint UK umbrella service that can help offset the cost of work-related expenses (including door to door travel, lunches and materials) against your taxable income. This means you can take home more money each week.

We also offer limited company setup and personal accountancy services if your finances are more complicated.

Contact us to find out which option best suits you.

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