Company Car Tax
Two new bands to be introduced in the 2013 Finance Bill, for emissions up to 75g effective from 6 April 2015.
The rate of fuel benefit charge for company cars, vans and the vans benefit charge will all increase in line with inflation (RPI) for 2014/15.
New Childcare Scheme from 2015
As reported by the CIPP on 19 March 2013, the Chancellor confirmed tax relief of up to £1200 per annum, per child in his Budget speech. HM Treasury has confirmed the CIPP will be involved in the consultation as to how this new scheme will work in practice.
Income Tax Personal Allowance
For those born after 5 April 1948, the Personal Allowance will increase to £10,000 from 2014. This increase has been brought forward by one year as it was originally expected to be in 2015. However the budget also states after this major increase in 2014, the allowance will then increase each year by the rate of inflation (CPI).
Also from April 2014 the basic rate threshold will be set at £31,865 and the higher rate will increase by 1 percent to £41,865.
Exemption threshold for employer provided beneficial loans
The threshold will increase from £5k per annum to £10,000 from April 2014.
CIPP comment: As many payroll professionals will be aware, the CIPP ran a survey in January 2013 after the rail fare increases to understand the impact on employers who provide beneficial loans to assist with rail season tickets. The results showed overwhelming support for the CIPP policy team to lobby HMT to consider increasing the £5k limit. The CIPP welcome this news as it will clearly aid many employees and therefore employers to assist with the ever increasing rail fares. Collection of debts through PAYE tax codes The government has announced that later this year it will consult on how it can improve the collection of tax debts through PAYE tax codes to include how they can increase the size of debt that can be recovered through a tax code for those with higher earnings. Scoping exercise into partnerships The Office of Tax Simplification will carry out a scoping exercise as part of a review which will look to simplify the taxation of partnerships. More on this to follow.
Pension Tax Relief The Finance Bill 2013 will confirm the previously announced pension tax relief changes that
result in, for the 2014/15 tax year onwards: Annual Allowance £40,000 per annum Life Time Allowance £1.25million
CIPP Policy News Journal
16/04/2014, Page 45 of 519
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