Protect your personal
your personal allowance is
reduced by 50p for every
pound your income is
over £100,000. If you can
reduce your income below
£100,000, e.g. by making
a pension contribution or
charitable gift, you should
benefit from the full
18 March 2015
Income tax – personal allowance and basic rate band
For 2015/16 the personal allowance will rise from £10,000 to
£10,600 and there will be an £80 reduction in the basic rate band
to £31,785, as previously announced. The personal allowance
will be increased to £10,800 for 2016/17 and £11,000 for 2017/18.
The basic rate limit will be increased to £31,900 for 2016/17 and
£32,300 for 2017/18.
Class 2 national insurance contributions (NICs)
The government intends to abolish Class 2 NICs in the next
parliament and reform Class 4 NICs to introduce a new benefit
test. There will be consultation on the detail and timing of these
reforms later in 2015.
The maximum amount that parents of disabled children will be
able to receive under the new childcare scheme starting in the
autumn will be increased from £2,000 to £4,000 a year for each
Company car benefit
From 2019/20 the scale percentage of the list price of company
cars that are subject to tax will be increased by 3% up to a
maximum of 37% for cars emitting more than 75g/km of CO
There will be a 3% differential between the 0–50g/km and
51–75g/km bands and between the 51–75g/km and 76–94g/km
bands. The rates for years up to 2018/19 are as previously
Van benefit charge (VBC)
From 6 April 2016 the main VBC will increase in line with RPI. As
previously announced, lower rates of VBC for zero emission vans
will be extended to 5 April 2020 on a tapered basis.
Fuel benefit charge
From 6 April 2016 the fuel benefit charge multiplier for both cars
and vans will increase in line with RPI.