Employment Taxes


The Apprenticeship Levy was announced at Summer Budget 2015 and will be introduced from 6 April 2017. The Levy will be charged at a rate of 0.5% of an employer's total pay bill for Class 1 NIC purposes. Each employer will receive an allowance of £15,000 to offset against their Levy payment, the intention being that the Levy will only be payable on pay bills in excess of £3 million a year. 

The CIOT has commented on the draft clause published on 2 February 2016 (and updated on 5 February to correct typographical errors) to be included in Finance Bill 2016 to introduce the new deemed domicile rules for income tax and capital gains tax. The new rules will take effect from 6 April 2017.

On Wednesday 24th February 2016: 14:00 – 14:45, HMRC are talking about Debt Management and Banking Migration. This session is primarily aimed at agents that have clients abroad that pay by any means (BACS, CHAPS, or cheque/all payments). This will include a look at the background to migration (why, when, how, etc.), the successes, what it means to you and your clients and the ‘how to pay HMRC’ gov.uk changes.

The CIOT comment sent to HMRC 9 February 2016 on Employer provided living accommodation.

The government published in December 2015 draft legislation to tax the income from sporting testimonials granted to employed sportspeople, but with a limited exemption of £50,000 for payments from qualifying testimonials.



The pension lifetime allowance (LTA) for funds held in an approved pension scheme is to be reduced from £1.25m to £1m from 6 April 2016. It is also proposed that from April 2018 onwards the LTA will increase in line with the consumer prices index (CPI).

Draft Finance Bill 2016 Clause 11 amends the tax treatment of unapproved employee share schemes. The main effect is that Restricted Stock Units (RSUs) awarded to Internationally Mobile Employees (IMEs) are taxed under the rules that deal specifically with Employment-Related Securities (ERS) rather than those dealing with earnings generally.

The government is introducing legislation (draft Finance Bill 2016 Clause 9) to prevent agency workers, umbrella company workers, and workers engaged by their own personal service company (PSC) (where IR35 applies), from claiming a deduction for home to work travel and subsistence costs in such cases where the workplace would not be regarded as a temporary workplace if the worker had been engaged directly by the end client.

The government is proposing to include in Finance Bill 2016 (having omitted a similar draft Clause published in December 2014 from the 2015 Finance Bills) a statutory exemption to exempt trivial benefits in kind (BIKs) provided by employers to employees from income tax and NICs.

The CIOT comments sent to HMRC 2 February on Simple Assessment.