responses, the government has decided not to extend the existing tax relief for employees, the self-employed, or for retraining.
Responses to the consultation were mixed and the government has concluded that there is insufficient evidence that extending tax relief is likely to be effective in incentivising self-funded work-related training. The responses to the consultation were mixed but the majority of responses were sceptical about the impact of tax relief in addressing the established barriers to learning, which include the upfront cost and a lack of time caused by work and other commitments.
The government believes other policy interventions will be more effective in delivering support and addressing the barriers to learning, but as with all taxes, it will keep this under review.
Building on existing initiatives, the government will instead continue to focus on implementing its Industrial Strategy and launching the ambitious National Retraining Scheme. This will help those in work, including the self-employed, develop the skills they need to thrive and support business to adapt as the economy changes. Budget 2018 allocates £100 million for the first phase of the National Retraining Scheme. This will include a new careers guidance service with expert advice to help people identify work opportunities in their area, and state-of-the-art courses combining online learning with traditional classroom teaching to develop key transferable skills. The National Retraining Partnership between the government, the Confederation of British Industry and the Trades Union Congress will focus on job-specific retraining in phase two. To support the development of the Industrial Strategy and alongside the National Retraining Scheme, the government will fund £20 million of skills pilots. The government has also noted concerns about the apprenticeship levy and will introduce a package of reforms to strengthen the role of employers in the apprenticeship programme. As part of this the government will: • make up to £450 million available to enable levy paying employers to transfer up to 25% of their funds to pay for apprenticeship training in their supply chains • provide up to £240 million to halve the coinvestment rate for apprenticeship training to 5% • provide up to £5 million to the Institute for Apprenticeships and National Apprenticeship Service in 2019-20, to identify gaps in the training provider market and increase the number of employer-designed apprenticeship standards available to employers.
All new apprentices will start on these new, higher-quality courses from September 2020.
The Exchequer Secretary to the Treasury and the Minister for Apprenticeships and Skills will work with a range of employers and providers to consider how they are responding to the apprenticeship levy across different sectors and regions in England, as well as the future strengthened role of apprenticeships in the post-2020 skills landscape.
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Finance (No.3) Bill 2018 12 November 2018
The Finance (No.3) Bill 2018 was published on 7 November 2018, along with the necessary supporting documents.
It had its First Reading on Thursday 1 November (following the House's decisions on the Budget resolutions) and Second reading of the Bill is scheduled to take place in the House of Commons on Monday 12 November 2018.
There are 92 clauses in the Bill (a mere 315 pages long); the key ones of interest include:
• Income tax charge for tax year 2019-20 • Main rates of income tax for tax year 2019-20 • Default and savings rates of income tax for tax year 2019-20 • Basic rate limit and personal allowance • Starting rate limit for savings for tax year 2019-20 • Optional remuneration arrangements: arrangements for cars and vans
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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