The Employment Allowance will be increased from £2,000 to £3,000, with effect from April 2016. However, the allowance will not be available to companies where the director is the sole employee.
Changes are also being made to the system for benefits in kind and business expenses, from April 2016. The £8,500 threshold for P11Ds will be removed, and a statutory system will be introduced to replace the old P11D dispensations for business expenses. These will include scale rates for subsistence allowances.