image
image
image



Personal Tax Allowances

It is important that your payroll complies to current legislation. Here are the latest earning thresholds for 2012/13 tax year.

Legislation

The following changes to Income Tax allowances will commence from 6 April 2012:

  • Personal Allowance 8,105

  • From the 2012-13 tax year, all earnings above 150, 000 will attract 50% tax. This is by 1 for every 2 earned above the 100,000 limit.  Income limit for personal allowance 100,000.

  • Personal Allowance for people aged 65-74 10,500

  • Personal Allowance or people aged 75 and over 10,660

  • Married Couples Allowance (born before 6/4/1935) aged 75 and over 7,705
  • Basic Rate 20% Bandwidth 1 to 34,370 (Previously 35,000)

  • Higher Rate 40% Bandwidth 34,371 - 150,000
  •  Additional Rate  50% Bandwidth 150,001 and above.
Read more ... 

 

 


If you are a registered client, we have given you the complete Tax and National insurance breakdown on our  tax tables page.  
 

http://www.hmrc.gov.uk/employers/epa-understanding.htm

 

Employee Tax Allowances

2011/12

2012/13

Personal Allowance
7,475
8,105
Personal Allowance (65-74)*
9,490
10,500
Personal Allowance (75+)*
10,090
10,660
Blind Person's Allowance
1,890
2,100
Married Couple's Allowance (65-74)*

Not applicable

Not applicable

Married Couple's Allowance (75+)*
7,295
7,705
Income Limit for age-related allowances
24,000
25,400


National Insurance - Weekly Rates

2012-2013

Lower earnings limit, primary Class 1

 102

Upper earnings limit, primary Class 1

817

Employees Primary threshold

146

Up To Earnings Threshold

Nil

Employees’ primary Class 1 rate between primary threshold and upper earnings limit

12%

Employees’ primary Class 1 rate above upper earnings limit

2%

Employees’ contracted-out rebate,
salary-related pension  schemes

1.4%

Employers’ secondary Class 1 rate above secondary threshold

 13.8%

Employers’ contracted-out rebate,
salary-related pension  schemes

3.4%

Employers’ contracted-out rebate,
money-purchase schemes

N/A from April 2012



Existing clients can view the tables in more details on the Tax Tables Support page on our website. The new Tax, NIC and mileage rates can also be viewed here. 

If your employee has a main job elsewhere where they are paying the maximum national insurance, they can apply for a deferment of paying any additional national Insurance if this second job. More information is on our customer support pages.

Small Employers’ Relief

For the 2012-2013 tax year provided that the total gross Class 1 NICs is 45,000 or less, you will be classed as a small employer.
Small employers are entitled to recover the difference between 13% of their total national insurance bill and the statutory sick pay paid for that month.
Small employers are also entitled to recover 100% of the total Maternity pay paid plus compensation from the Revenue.

   

This page was last updated 13/05/2012




image


image
image