when the loan was originally taken out. However, in his statement today the Chancellor announced a further type of student loan which will be made available to post-graduates under the age of 30 who wish to undertake a Masters degree. It is planned that these loans, of up to £10,000, will be available from 2016-17 and will be repaid concurrently with undergraduate loans. The loans are designed so that, on average, individuals will repay in full, in recognition of the high private return to individuals, but that they will beat commercial rates. It is expected that around 40,000 individuals will benefit from this new loan. CIPP comment Although the CIPP supports extending student loans to aid those wanting to obtain a Masters degree, as if life weren’t complicated enough, it is very likely that we will now have a third type of student loan to collect in the next few years. So far HMRC and BIS have been very proactive in working with stakeholders to ensure that the process for collecting Plan 2 student loans from 2016 will bring the least administrative burden as possible to employers. We hope that this level of consultation continues when plans are being made for the collection of this third student loan. The policy team are involved with the student loan forum.
Extending the Employment Allowance to employers of care and support workers
From April 2015, employers of carers and support workers will also be able to benefit from the £2,000 Employment Allowance for employer NICs.
CIPP comment The CIPP has been calling for employers of carers to benefit from the Employment Allowance and welcomes this announcement. There was no mention however, of this being extended to nannies, which will disappoint many families struggling to pay childcare costs.
No Employer NICs on apprentices under 25 years old
Last year the government told us that from April 2015 there would be no employer NICs due on earnings up to the Upper Earnings Limit for employees under 21 years of age. The Chancellor has now announced that this will be extended from April 2016 to include all apprentices under the age of 25. CIPP comment The extension of the removal of employer NICs or jobs tax, for those employing young people brings further welcome financial benefits for employers; however, these inevitable NI category changes will coincide with the removal of several NI categories due to the introduction of single tier pensions. Ensuring the correct NI category is being used for all employees from April 2016 could be a burdensome task and it is hoped that payroll software can cope with the changes.
The policy team had also hoped to see confirmed the government’s response to apprenticeship funding and so we continue to wait to find out our fate!
Other items of interest
Taxation of resident non-domiciles
The government will increase the annual charge paid by non-domiciled individuals resident in the UK who wish to retain access to the remittance basis of taxation. The charge paid by people who have been UK resident for 7 out of the last 9 years will remain at £30,000. The charge paid by people who have been UK resident for 12 out of the last 14 years will
CIPP Policy News Journal
08/04/2015, Page 35 of 521
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