Corrections to CIPP summary of the Spending Review and Autumn Statement 2015

27 November 2015

Under the first section, ‘Tax rates and thresholds’ the UEL, UST and AUST should have been £827, not £817. The van benefit charge increase is by £20, not £30, to £3,170.

The version that was in our news distribution on Thursday 26 November has been corrected.

The Policy Team would like to apologise for any confusion the errors may have caused.

The correct text from our summary is below.

National Insurance

Most National Insurance (NI) limits and thresholds are linked to the Consumer Price Index (CPI) and so figures for 2016-17 have not been announced yet. The Upper Earnings Limit (UEL), however, is linked to income tax and therefore the increase is known: it increases from £815 to £827. As a result, the Upper Secondary Threshold for Under 21s (UST) and the new Apprentice Upper Secondary Threshold (AUST) also increase to £827. As previously announced from April 2016, the Employment Allowance increases from £2,000 to £3,000. And not forgetting that come 6 April 2016, contracting out of the State Second Pension ends, so NI rebates are no more and their associated categories will no longer be used.

Cars and vans

The 3% diesel supplement on the car benefit charge will not be removed from April 2016 as originally planned. Mr Osborne announced a delay in its removal to April 2021 “in light of the slower than expected introduction of more rigorous EU emissions testing” (and possibly also due to the Volkswagen scandal).

Car and van fuel charges and the van benefit charge increase by the Retail Price Index (RPI) each year; the amounts for 2016-17 were announced in associated documents published today. The car fuel benefit charge multiplier will increase by £100 to £22,200 and the van fuel benefit charge will increase by £4 to £598. The van benefit charge will increase by £20 to £3,170.