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Thursday, May 5th, 2016

Legal update – Tax

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.

www.sandy-a.co.uk/employment.htm#scotland-tax

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!)

www.sandy-a.co.uk/employment.htm#tax-allowances

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.

www.sandy-a.co.uk/employment.htm#paye-benefits

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.

www.sandy-a.co.uk/employment.htm#paye-accommodation

Tax-free childcare

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.

www.sandy-a.co.uk/employment.htm#taxfree-childcare

Employment allowance

Increased from £2,000 to £3,000 per year from 6 April.

www.sandy-a.co.uk/employment.htm#nics-allowance

Further information

Find further information and updates on Sandy Adirondack’s legal update website: www.sandy-a.co.uk/employment.htm

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