Class 1 Upper Earnings Limit (UEL) and the Class 4 Upper Profits Limit for NICs will continue to be aligned with the point at which higher rate tax becomes payable £41,865. More on these rates and tables can be found here .
OTS report on simplifying the tax system in respect of employee benefits and expenses
The government has confirmed it will implement 9 ‘Quick Wins’ identified by the OTS’s interim report on employee benefits and expenses by the end of January 2014.
CIPP comment The CIPP will provide more detail on these wins over the coming days.
Employee Ownership benefits
An annual exemption from income tax on bonuses or equivalent payments up to an amount of £3,600 paid to employees of companies that are indirectly employee owned. An increase in the maximum annual value of shares that an employee can acquire with tax advantages under the Share Incentive Plans to £3,600 a year for ‘free’ shares and to £1,800 a year for ‘partnership’ shares. The Save As You Earn savings contribution limit will be doubled from £250 to £500. This will be the first increase for these schemes in over a decade.
CIPP comment The government really do like these schemes, don’t they!
Recognising marriage in the tax system
From April 2015, a spouse or civil partner who is not liable to Income Tax or not liable above the basic rate for a tax year will be entitled to transfer £1,000 of their personal allowance to their spouse or civil partner provided that the recipient of the transfer is not liable to Income Tax above the basic rate. The transferor’s personal allowance will be reduced by £1,000. The spouse or civil partner receiving the transferred allowance will be entitled to a reduced Income Tax liability of up to £200.
No more paper road tax discs
The government announced changes to the current paper car tax disc system. The car tax disc is to be scrapped after 93 years and an electronic system is predicted from October 2014. CIPP comment Will this reduce some burden on businesses that have to ensure their vehicles display tax discs? It does mean no-one can hide as one assumes this will link to the intelligent systems the Police use?
Abolition of NICs for under 21s
CIPP Policy News Journal
16/04/2014, Page 31 of 519
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