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page 5

BUDget

18 March 2015

Tax returns and tax payment

During the next parliament, digital tax accounts will be

introduced to remove the need for individuals and small

businesses to complete annual tax returns. Further details about

the policy and administrative changes will be published later in

2015. Over the summer there will also be consultation on a new

payment process to enable tax and NICs to be collected via digital

accounts.

Employee benefits and expenses

From April 2015 there will be a statutory exemption for

employees’ trivial benefits-in-kind costing less than £50, as

previously announced. An annual cap of £300 will also be

introduced for directors and other office holders of close

companies and employees who are family members of those

office holders.

From April 2016, the £8,500 threshold below which employees do

not pay income tax on certain benefits-in-kind will be removed

and replaced with new exemptions for carers and ministers of

religion. The current dispensation regime will be replaced with

an exemption for certain reimbursed expenses and a statutory

framework will be introduced for voluntary payrolling. The new

exemptions for reimbursed expenses will not be available if used

in conjunction with salary sacrifice.

PENSIONS AND SAVINGS

Help to Buy ISAs

A new ISA for first time buyers will offer a

government bonus when investors use their savings

to purchase their first home. For every £200 that a

first time buyer saves, there will be a £50 bonus

payment up to a maximum of £3,000 on £12,000

of savings. The bonus will be available for

purchases of homes of up to £450,000 in London

and up to £250,000 elsewhere.

The bonus will only apply for home

purchase. Savers will have access to

their own money and will be able to

saver

The new £5,000 0%

starting rate band comes

into being in 2015/16.

If your earnings and/or

pensions total not more

than £10,600 you may

be able to register to

receive interest without

deduction of tax.

£