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CLASS 2 NATIONAL
INSURANCE FOR
SELF-EMPLOYED PERSONS
At present, a self-employed person in
business is required to pay class 2 national
insurance contributions (NICs) if their proit
is over the small proits threshold. From
April 2018, class 2 national insurance
will be abolished and only class 4 NICs
will be payable. As class 2 NICs currently
enable self-employed individuals to build
entitlement to the state pension and other
contributory beneits, class 4 national
insurance will be reformed in April 2018 so
that self-employed people can continue to
build beneit entitlement.
OFF-PAYROLL WORKING IN
THE PUBLIC SECTOR
As from April 2017, public sector bodies
and agencies will become responsible for
operating the tax rules that apply to
off-payroll working through limited
companies in the public sector.
The individuals working through their own
limited company in the public sector will
no longer be responsible for deciding
whether the intermediaries legislation
applies and then paying the relevant tax
and national insurance.
The responsibility for complying with
the rules will move to the public sector
employer, agency or third party that
pays the worker’s intermediary and it
will become their obligation to decide if
the rules apply to the contract and if so,
account and pay the liabilities through real
time Information and deduct the relevant
tax and NICs.
CAPITAL ALLOWANCES FOR
BUSINESS CARS
The 100% irst year allowance for
businesses purchasing low emission cars
will be extended for a further 3 years until
April 2021.
From April 2018, the carbon dioxide
emission threshold below which cars are
eligible for the irst year allowance will
decrease to 50 g/km from the current
threshold of 75 g/km. Similarly, the carbon
dioxide emission threshold for the main rate
of capital allowances for business cars will
reduce from the current rate of 130 g/km
to 110 g/km.
VAN BENEFIT CHARGE FOR
ZERO EMISSIONS VANS
The level of van beneit charge for zero
emissions vans will be set at 20% of the
charge for conventionally fuelled vans for
the 2016/17 and 2017/18 tax years. This
measure defers the planned increase to
40% until 2018/19.
TRIVIAL BENEFITS IN KIND
As previously announced, a statutory
exemption from income tax for qualifying
trivial beneits in kind costing £50 or less
will be introduced from 6 April 2016. The
exemption will also remove the charge
from class 1A NICs, with a corresponding
disregard for class 1 national insurance
taking effect later in the year.
TAXATION OF TERMINATION
PAYMENTS
With effect from April 2018 employers will
be required to pay NICs on termination
payments to an individual above £30,000.
This rule applies where income tax is
also due.
EMPLOYER PROVIDED
PENSIONS ADVICE
The available exemption from tax and
national insurance for employer arranged
pension advice will increase from
£150 to £500 from April 2017.
BUSINESS PREMISES
RENOVATION ALLOWANCE
The business premises renovation
allowance will expire on 31 March 2017 for
corporation tax and 5 April 2017 for
income tax.
OFFSHORE PROPERTY
DEVELOPERS
A new measure will be introduced to
ensure that proits from trading in UK land
are always subject to UK tax by introducing
speciic rules to tax the full amount of
proits, regardless of whether or not the
person to whom they arise is UK resident.
ROYALTY WITHHOLDING TAX
The government will change the deduction
of tax at source regime to bring all
international royalty payments arising in the
UK within the charge to income tax, unless
SELF-EMPLOYED CLASS 2 NICS
ABOLISHED FROM 2018