Of interest to all employers is the DWP’s confirmation that for the 2015/16 tax year the earnings trigger will remain fixed at £10,000. This decision breaks the link between earnings and tax relief, as the earnings trigger will no longer match the income tax personal allowance which will rise to £10,600 for the 2015/16 tax year.

For the qualifying earnings band, the DWP has adopted its proposal as set out in the October 2014 consultation document, where the lower and upper ends of the band are set in line with the National Insurance lower and upper earning limits respectively, that is £5,824 and £42,385.