- Today (April 6) is the start of the new tax year and the first Common Commencement Date for 2016, which sees a number of changes come into effect, such as abolishing employer National Insurance contributions for apprentices aged under 25
- In addition, the Annual Employment Allowance rises from £2,000 to £3,000
- Other changes include the reduction of Capital Gains Tax rates, from 28% and 18% to 20% and 10% respectively, and the replacement of the Dividend Tax Credit with a Dividend Tax Allowance of £5,000 a year
Commenting on the National Insurance changes, Dr Adam Marshall, BCC Acting Director General, said:
“Abolishing employer contributions will encourage more businesses to hire young apprentices, at a time when the UK is faced with a growing skills shortage.
“The rise in the Annual Employment Allowance is as boost for small and start-up businesses because it means that the less National Insurance that companies have to pay, the more confidence they will have to hire new staff.
“We would also like to see more consideration for companies that keep young people on beyond their apprenticeship, at which point the full contribution would kick in.”
On Capital Gains Tax changes, Dr Adam Marshall added:
“The cuts in capital gains tax will help to encourage entrepreneurial risk-taking in some of our most dynamic young firms.”