Tax and National Insurance Changes 2015

The following changes have come into effect for the 2015 Tax Year

RTI Changes 2015-16:

It will no longer be mandatory for employers to complete the final report checklist (data items 111 and 117) on their last Full Payment System (FPS) or Employer Payment Summary (EPS) for a tax year.

Employers should still report the Final Submission for Year indicator (item 109).

Under 21's Employer National Insurance (NI) Contributions:

From April 2015, employers will not be required to pay Class 1 secondary NICs on earning up to a new 'Upper Secondary Threshold' (UST), for employees who are under the age of 21. Class 1 secondary NICs will however continue to be payable on all earnings above the UST.

The measure will be delivered by introducing seven new National Insurance category letters (M,Z, Y, P, V, I, K).

Changes in tax coding:

- There will be an increase of 60 for 'L' suffix codes so 1000L becomes 1060L.

- The PAYE threshold with effect from 6 April 2015 is raised to £204 per week.

- The code for emergency use with effect from 6 April 2015 is 1060L.

Marriage Allowance:

Marriage Allowance will be introduced from April 2015. To support the change both the transferor and recipient's tax codes will have to be amended. This will in turn introeudce two new tax code suffixes. They will be:

- M will be used for the spouse/ civil partner receiving the transferred allowance

- N will be used for the spouse/ civil partner transferring the allowance

Shared Parental Leave and Pay (Birth and Adoption)

Shared Parental Leave will apply to babies due and children matched for adoption on or after 5th April 2014. 

Click here to find out more about the tax changes on the HMRC website.