With effect from 1 July 2014 the annual subscription limit for Junior ISA and CTF will be increased from £3,840 to £4,000.
Premium Bonds Premium Bonds, offered by NS&I, one of the oldest and best known savings products, are held by over 21 million people. The Budget announced that the cap on investments in Premium Bonds will be lifted for the first time since 2003, from £30,000 to £40,000, from 1 June 2014. It will then be lifted again to £50,000 in 2015-16. NS&I will also now offer 2 £1 million prizes per month, rather than 1, starting from the prize draw in August this year. This will increase savers’ chances of winning the largest prize and allow people who want to save more through Premium Bonds to do so. CIPP comment The chancellor did say it was a budget for savers and this is certainly good news for those who actually have some savings and have suffered under the low interest rates. Older investors are also to benefit with the additional benefits from the cap increase on Premium Bonds. Fuel Benefit Charge (FBC) The FBC multipliers for both company cars and vans will increase in line with inflation for 2015 to 2016. The increase will be based on the September 2014 RPI figure. Van Benefit Charge (VBC) The VBC will increase in line with inflation for 2015 to 2016. The increase will be based on the September 2014 RPI figure. Van Benefit Charge (VBC) support for zero emission vans Legislation will be introduced in Finance Bill 2015 to extend VBC support for zero emission vans to 5 April 2020 on a tapered basis. Company Car Tax (CCT) The appropriate percentage of list price subject to tax will increase by 2% points for cars emitting more than 75 grammes of carbon dioxide per kilometre (gCO2/km), to a maximum of 37%, in 2017 to 2018 and 2018 to 2019. CIPP comment With the cut for businesses in those who produce not so friendly carbon emissions it will come as no surprise the company car has to pay for it.
National Insurance contributions: simplification for the self-employed The government will introduce legislation when parliamentary time allows to simplify the administrative process for the self-employed by using Self-Assessment to collect Class 2 National Insurance contributions alongside Income Tax and Class 4 National Insurance contributions. These changes will take effect from April 2016; however customers will start to see the benefits after April 2015.
CIPP comment The Office for Tax Simplification (OTS) recommended that class 2 NICs be moved into Self-Assessment and this has now been approved by government.
Tax avoidance and non-compliance
CIPP Policy News Journal
16/04/2014, Page 50 of 519
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