• At-a-glance
• Administration Of Tax
• Personal Taxation
• Employment Taxation
• Business Tax
• Capital Allowances
• Corporation Tax
• Capital Gains Tax
• Inheritance
• Savings and Investments
  
• Pensions
  
• Charities
  
• Anti-Avoidance
  
• Stamp Taxes
• Value Added Tax
• Excise Duties
• Miscellaneous

EMPLOYMENT TAX

Company Car Benefits

For 2011/12 the multiplier used to calculate the taxable benefit of free fuel for company cars is increased to £18,800.

For 2013/14 onwards, the percentages used to calculate the taxable benefit of a company car will be increased by one percentage point for all cars with carbon dioxide emissions between 95g/km and 220g/km.

Approved Mileage Allowance Payments

Regulations will be laid immediately to increase, from 6 April 2011, the rate of approved mileage allowance payments for cars and vans from 40 pence to 45 pence for the first 10,000 miles of business travel in a tax year. HMRC guidance will also be updated to permit an allowance for passenger payments currently in place for employees at a rate of 5 pence per passenger per mile to be extended to volunteers.

Employer-supported Childcare

Finance Act 2011 will restrict the level of income tax relief available to higher rate and additional rate taxpayers so that it matches the amount available to basic rate taxpayers. This will be achieved by reducing the monetary value of the income tax exemption for higher rate and additional rate taxpayers.
For those joining employer-supported childcare (ESC) schemes on or after 6 April 2011, the income tax exemption will be limited as follows:

• basic rate taxpayers, £55 per week;
  
• higher rate taxpayers, £28 per week; and
  
• additional rate taxpayers, £22 per week.

The change will apply only to individuals who join ESC schemes on or after 6 April 2011. Those who were members of ESC schemes prior to that date will be unaffected by the change.

National Insurance: Reduction in the Contracting Out Rebate

The contracted out rebate for defined benefit schemes is to be reduced for 2012/13 onwards from 3.7% to 3.4% for employers and from 1.6% to 1.4% for employees.