Employment taxation

Company vans
From 6 April 2005, employees will not be liable to tax if they have to take their van home but are not allowed other private use of the vehicle. Where the private use is unrestricted, the existing £500 or £350 scale charge will continue to apply until 5 April 2007. After that date, the discount for older vans will be removed and the scale charge for unrestricted private use will increase to £3,000. In addition, there will be a £500 fuel charge if the employer provides fuel for private use. Self-employed van drivers are not affected by these new rules.

Company cars and car fuel
For 2004/05, the set figure for the company car fuel benefit charge will remain at £14,400.
The CO2 emissions level that qualifies for the minimum petrol and Euro IV diesel percentage charge (ie 15%) will be frozen at 140 grams per kilometre for 2006/07.

Childcare
From 6 April 2005, employees will be able to receive up to £50 a week of childcare free of tax and national insurance contributions where their employers contract with an approved childcarer or provide childcare vouchers for the purpose of paying an approved childcarer. The childcare must be registered or approved home-childcare and it must be made available to all employees.

Payroll giving
Small and medium-sized enterprises with fewer than 500 employees that set up new payroll giving schemes from April 2004 will be able to apply for a one-off grant to help with the cost of establishing the scheme. The grant will be available for two years.

Enterprise management incentives (EMI)
For EMI options granted after 16 March 2004, it is no longer necessary for the qualifying company to own directly, or via its subsidiaries, at least 75% of any subsidiary companies.
The summary has been prepared very rapidly and may contain errors for which we cannot be held responsible. The proposals are in any event subject to amendment before the Finance Act is passed.