A number of changes have come into effect to mark the start of the new tax year (April 6) and the first Common Commencement Date for 2016.
Abolishing employer National Insurance contributions for apprentices aged under 25 as well as the Annual Employment Allowance rises from £2,000 to £3,000.
Other changes include the reduction of Capital Gains Tax rates, from 28 per cent and 18 per cent to 20 per cent and 10 per cent 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.”