Autumn Statement 2015 – personal tax

Personal Tax

State Pension

From April 2016, the basic state pension will rise to £119.30 per week, an increase of £3.35. This will be the highest real terms increase to the state pension for 15 years.

From April 2016, those reaching pensionable age will receive a new, ‘single-tier’ pension with a starting rate of £155.65. Those reaching pensionable age before the reforms are introduced will receive their State Pension in line with the current rules


The proposed new Tax Free Childcare system which was originally due to be introduced this Autumn now looks as though it will be introduced  early 2017, providing up to £2,000 a year per child to help working parents with their childcare costs. The Autumn Statement and Spending Review sets an upper income limit per parent of £100,000 and a minimum weekly income level per parent equivalent to 16 hours (worked at the National Living Wage) to qualify for the Tax-Free Childcare.


Apprenticeship levy – The government will introduce the apprenticeship levy in April 2017. It will be set at a rate of 0.5% of an employer’s pay bill and will be paid through PAYE. Each employer will receive an allowance of £15,000 to offset against their levy payment. This means that the levy will only be paid on any pay bill in excess of £3 million. Less than 2% of UK employers will pay the levy.

Automatic enrolment minimum contribution rates – The government will delay the next two scheduled increases in automatic enrolment minimum contribution rates by 6 months each, to align these changes with the start of the tax year.

Employment intermediaries and tax relief for travel and subsistence

As confirmed at Summer Budget 2015, the government will legislate to restrict tax relief for travel and subsistence expenses for workers engaged through an employment intermediary, such as an umbrella company or a personal service company. Following consultation, relief will be restricted for individuals working through personal service companies where the intermediaries legislation applies. This change will take effect from 6 April 2016.

Company Cars

Company Car Tax diesel supplement – From April 2016 the 3% point differential between diesel cars and petrol cars will now be retained until April 2021.






Taxation of sporting testimonials

Following the consultation announced at Summer Budget 2015, the government will legislate to simplify the tax treatment of income from sporting testimonials. From 6 April 2017, all income from sporting testimonials and benefit matches for employed sportspersons will be liable to income tax. In addition, an exemption of up to £50,000 will be available for employed sportspersons with income from sporting testimonials that are not contractual or customary. This legislation will apply where the sporting testimonial is granted or awarded on or after 25 November 2015, and only to events that take place after 5 April 2017. Separate legislation will be introduced before 6 April 2017 for the National Insurance treatment of this income which will follow the income tax treatment.


Tax Digital Tax Accounts

At the March 2015 Budget the government announced plans to transform the tax system over the Parliament by introducing personalised digital tax accounts. The Spending Review and Autumn Statement announces that the government will: invest £1.3 billion to transform HMRC into one of the most digitally advanced tax administrations in the world. Most businesses, self employed people and landlords will be required to keep track of their tax affairs digitally and update HMRC at least quarterly via their digital tax account, reducing errors through record keeping. HMRC will ensure the availability of free apps and software that link securely to HMRC systems and provide support to those who need help using digital technology. This will not apply to individuals in employment, or pensioners, unless they have secondary incomes of more than £10,000 per year. The government will publish its plans to transform the tax system shortly and will consult on the details in 2016..