Month: May 2016
6 April 2016 marked the date when a raft of employment tax changes came into force. Existing dispensations for expenses are obsolete. There are new restrictions on tax relief for travel and subsistence expenses under arrangements involving employment intermediaries. The existing rebate for employers with contracted out salary related (defined benefit) pension schemes came to an end, along with the £8,500 threshold that separates lower and higher paid employees for benefit in kind purposes.
The new regime for taxing dividends will apply with an initial £5,000 annual exemption. Lifetime and annual allowance restrictions take effect. The new exemption for trivial benefits comes into force. Employers have until 5 April 2016 to register for payroll online, specifying which benefits to payroll and to which employees receiving those benefits payrolling will apply. There will be a zero rate of employer’s class 1 NICs for apprentices under 25.