Charity Commission Guidance

CC35 (Trustees Trading and Tax) guidance has recently been released which covers subsidiary company charity donations. The guidance confirms that a company cannot make a charitable donation in excess of its distributable reserves, as this is not allowed under company law.

Student Loans

From April 2016 there will be 2 student loan plan types which will be known as Plan 1 and Plan 2. Each plan will have a different threshold. We will need to deduct student loan repayments using the appropriate plan type.

Zero Rate Employer Class 1 NICs for apprentices under the age of 25

If you employ an apprentice who is under the age of 25, from 6 April 2016 you may no longer have to pay employer Class 1 NICs on their earnings up to the new Apprentice Upper Secondary Threshold, which will be £43,000 a year for the tax year beginning 6 April 2016.

End of contracted out NICs

Contracting out of the additional State Pension on a defined benefit (DB) base ended on 5 April 2016. Any employers who have benefited from paying a reduced rate of employers’ national insurance will pay the full 13.8% from 6 April 2016.

Increase in Employment Allowance to £3,000

If you are an eligible employer, you can reduce the amount of employer NICs you pay by up to £2,000 per year through the Employment Allowance.

Introduction of Living Wage – £7.20 for employees age 25 and over

On 1 April 2016 the National Living Wage will become law.
The Government is encouraging employers to prepare early for the changes and make sure they follow these four simple steps

Payrolling benefits in kind and simplifying employee benefits and expenses

Following HMRC’s consultation over the summer, the regulations on the simplification of employee benefits and expenses have been published.

Spring 2016 Newsletter

Spring 2016 Newsletter