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APPRENTICESHIP LEVY
LEVY:
0.5%
ALLOWANCE:
£15,000
3
//
Business Announcements
BUSINESS
ANNOUNCEMENTS
APPRENTICESHIP LEVY
From April 2017, an apprenticeship levy
set at a rate of 0.5% of an employer’s
wage bill and payable through PAYE will be
introduced. Each employer will receive an
allowance of £15,000 to offset against their
levy payment.
As a result, the levy should only be paid
on a wage bill in excess of £3 million.
Less than 2% of UK employers should
pay the levy.
DIGITAL TAX ACCOUNTS
The government emphasised its
commitment to the introduction of
digital tax accounts. Most businesses,
self-employed people and landlords will
be required to keep track of their tax affairs
digitally and update HMRC at least quarterly
via their digital tax account.
The government will publish its plans to
transform the tax system shortly and will
consult on the details in 2016.
SMALL BUSINESS
RATE RELIEF
The doubling of the small business rate
relief will be extended for another year
from 1 April 2016.
EMPLOYMENT
INTERMEDIARIES AND TAX
RELIEF FOR TRAVEL AND
SUBSISTENCE
Following the consultation announced at
Summer Budget 2015, the government will
legislate to restrict tax relief for travel and
subsistence expenses for workers engaged
through an employment intermediary
such as an umbrella company or personal
service company.
The relief will be restricted for individuals
working through personal service
companies where the intermediaries
legislation applies. This change will take
effect from 6 April 2016.
COMPANY CAR TAX DIESEL
SUPPLEMENT
Contrary to previous announcements,
the 3 percentage point differential between
diesel cars and petrol cars will now be
retained until April 2021.
EMPLOYEE SHARE SCHEMES
A number of technical changes
will be made in an attempt to
streamline and simplify aspects of the
tax rules surrounding tax-advantaged
and non-tax-advantaged employee
share schemes.
The changes are intended to provide
more consistency, including clarifying the
tax treatment of internationally mobile
employees of certain employment related
securities and share options.
EXTENDING AVERAGING
FOR FARMERS
From April 2016, the averaging period
for self-employed farmers will be
extended from 2 years to 5 years, with
the farmers having the option of either
averaging period.