Fuel duty will be frozen again so the increase due in September is cancelled. Since 2011, the government has cut and frozen fuel duty, saving a typical motorist a total of £675 by the end of 2015-16. By the end of 2015-16 fuel duty will have been frozen for five years, resulting in the longest duty freeze in over 20 years. CIPP comment Again this frozen fuel duty will support many businesses, especially the SME and the entrepreneur. The CIPP members as individuals will also benefit from this fuel duty freeze. The Chancellor also made reference to supporting the motoring industry by slowing any future company car tax rates; so more good news there.
Simplification of employee benefits and expenses
As announced in Autumn Statement 2014 we are aware that from April 2015 the government will provide a statutory exemption for trivial benefits in kind costing less than £50. A point worth highlighting is that following technical consultation, an annual cap of £300 will also be introduced for office holders of close companies and employees who are family members of those office holders.
Other areas of interest
Redesign of £1 coin On the day, one year on from the original announcement that 2017 will see the unveiling of a new £1 coin, the Chancellor takes a break from balancing the budget to call the winner of the design the 'tails' side of the new competition, 15 year old David Pearce. David's design encompasses the rose, the leek, the thistle and the shamrock all emerging from a Royal Coronet. At a time when we see increasing division between tax and employment initiatives in England, Scotland, Wales and Northern Ireland, it is encouraging to see the UK countries unified through a new coin which is set to replace the current design amid fears of its vulnerability to sophisticated counterfeiters. Making Individual Savings Accounts (ISAs) more flexible Individuals will be able to withdraw and replace money from their cash ISA in-year without it counting towards their annual ISA subscription limit, and the government will change the rules this autumn following technical consultation with ISA providers. Help to Buy: ISA The scheme will provide a government bonus to each person who has saved into a Help to Buy: ISA at the point they use their savings to purchase their first home. For every £200 a first time buyer saves, the government will provide a £50 bonus up to a maximum of £3,000 on £12,000 of savings. Class 2 National Insurance contributions (NICs) As part of the planned reforms to tax administration, the government will abolish Class 2 NICs in the next Parliament and will reform Class 4 to introduce a new contributory benefit test. The government will consult on the detail and timing of these reforms later in 2015. Abolishing Class 2 NI, who would have thought it!
Tax Avoidance and Evasion A number of additional measures are being introduced. HMRC has published full details.
Corporation Tax rate The government will legislate to set the rate of Corporation Tax at 20% for the financial year beginning on 1 April 2016. Welfare The government will invest £15 million from 2015-16 to 2017-18 in the greater use of Real Time Information to reduce fraud and error in Pension Credit and Housing Benefit.
Summer Budget 2015 9 July 2015
The CIPP has produced a summary of the 2015 Summer Budget
Phrases like ‘this is a budget for working people’, ‘from a one nation government’ and ‘Brits trusted us to finish the job’ were included in the opening of the Chancellor’s second Budget this year. And promises that it would move Britain from a low wage, high tax, high welfare economy to a higher wage, lower tax, lower welfare economy. The new all conservative government are certainly going to do that with some daring welfare reforms (no changes for payroll on statutory payments you will be pleased to hear) and the introduction of a new National Living Wage - not to be confused with the current Living Wage. This new Wage is to be offset by a 50 per cent increase in the
CIPP Policy News Journal
25/04/2016, Page 165 of 453
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