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Friday, February 13th, 2015

Legal update – Income Tax and National Insurance

Legal expert Sandy Adirondack has sent this update on Income Tax and NI issues that affect voluntary and community organisations (received on 13/02/2015).

Scottish rate of income tax

Technical note on the Scottish rate of income tax, which comes into effect on 6 April 2016.

Workers supplied by intermediaries

In many cases, agencies or other suppliers of a worker are liable for operating PAYE for the worker, and from 6 April 2015 may need to report to HMRC if they do not.

Real time PAYE information

Penalties for late filing of real time information start in March for employers with fewer than 50 employees, except for micro employers who had fewer than 10 employees on PAYE on 6 April 2014. Penalties started in October 2014 for employers with 50 or more employees.

Tax codes

Increased recovery by HMRC through tax codes.

Tax and NI

Tax allowances and national insurance thresholds for 2015-16.

Exemption from secondary class 1 (employer’s) NI contributions on earnings of under-21s up to £815 per week (from 6 April 2015) ….

… and on earnings of apprentices under 25 (from April 2016).

Employers allowance

Employers allowance (relief of up to £2,000 per year from employer’s national insurance payments) extended from 6 April 2015 to employers of personal carers.

Expenses and benefits in kind

Big changes in tax and national insurance treatment of expenses and benefits in kind – some in effect from 6 April 2015, with the big changes to follow in April 2016.

Tax-free childcare

New arrangements for childcare accounts topped up by the government, in effect from autumn 2015.

Futher Information

For more legal updates see Sandy Adirondack’s website: