National Insurance
From April 2015 employers NIC for employees aged below 21 on the date of payment will be reduced from 13.8% to 0% on earnings up to the Upper Secondary Threshold of £815 per week.
Employers NIC in respect of apprentices aged below 25 are similarly reduced.
The Employment Allowance of up to £2,000 is extended to householders who employ care and support workers. This allowance can be offset against their Employers NIC liability in each tax year.
Company Cars
The taxable benefit for company cars is usually calculated by reference to bands of CO2 emissions. In April 2015, the rate applied to each band increases by 2% with the maximum charge increasing from 35% to 37%. There will be similar increases in 2016, 2017 and 2018. In 2019, the rate will increase by 3%.
The 3% diesel supplement will be removed in 2016.
Company Vans
The exemption from the van benefit charge is to be phased out. From 2015, the benefit will be 20% of the normal benefit, 40% from 2016, 60% from 2017, 80% from 2018, 90% from 2019 and 100% from 2020 onwards.
Travel and Subsistence Expenses
Workers engaged through employment intermediaries such as umbrella companies or personal service companies can currently claim tax relief on home to work travel and subsistence that would not be available to direct employees. Rules to restrict these claims will be introduced from April 2016.
Employee Benefits
From April 2015 certain non-cash benefits in kind costing up to £50 will be exempt. This will be restricted to an annual cap of £300 for office-holders in close companies and their families.
From April 2016 the £8,500 threshold below which a P11d is not required is removed. At the same time, certain reimbursed expenses will be exempted from tax thus removing the need to apply for a dispensation.