13 July 2015
George Osborne presented his budget on 8 July. What impact will it have on charities and community groups? Claire considers this....To be honest, not much – unless you employ staff.
There was nothing about irrecoverable VAT or Gift Aid reform.
If you do employ staff and pay them at the lower end of the scale, the minimum wage for over 25s will increase from April 2016 to £7.20 an hour (from the current £6.50 per hour). So the salaries bill may go up, with no increase in grants / funding to offset it.
However the Employer’s NI Allowance will also go up from £2,000 to £3,000 pa from April 2016, potentially reducing the overall cost of employing staff.
The impact on your charity may therefore be positive, neutral or negative depending on your staffing levels. Time to get the calculator out or refresh your budget spreadsheet?