We have received this legal update on Tax issues from voluntary sector legal expert, Sandy Adirondack.
Scottish rate of income tax
In effect from 6 April, for individuals whose sole or main residence is in Scotland.
Tax allowances and national insurance thresholds for 2016-17
Tax rates remain the same.
National insurance rates remain the same, but with a new exemption from employers’ national insurance for apprentices aged under 25 who are following an approved UK government statutory apprenticeship framework and earning less than £827 per week (£43,000 p.a. – well paid apprentices!)
Tax and national insurance on expenses and benefits in kind
Significant changes from 6 April on how employee expenses and benefits in kind are taxed: abolition of the £8,500 threshold; a new statutory exemption for trivial benefits; exemption for qualifying expenses and benefits; and payrolling of expenses and benefits in kind.
Possible changes to tax treatment of employer-provided accommodation
Government call for evidence could lead to some types of accommodation no longer being seen as necessary for the work, and therefore exempt from tax.
Will come into effect in early 2017 for parents of children under 12 (under 17 if the child is disabled), with childcare accounts and government top-ups eventually replacing the current employer-supported childcare scheme of childcare vouchers and directly contracted childcare.
Increased from £2,000 to £3,000 per year from 6 April.
Find further information and updates on Sandy Adirondack’s legal update website: www.sandy-a.co.uk/employment.htm