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Personal Tax Allowances
It is important that your payroll complies to current
legislation. Here are the latest earning thresholds for 2010/11 tax
year.
Legislation
The following changes to Income Tax allowances will
commence from 6 April 2010:
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Personal Allowance £6,475
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From the 2010-11 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.
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Personal Allowance for people aged 65-74 £9,490
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Personal Allowance or people aged 75 and over
£9,640
- Married Couples Allowance (born before 6/4/1935) aged 75 and
over £6,965
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
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Employee
Tax
Allowances |
2008/09 |
2009/10 |
| Personal Allowance |
6,035 |
6,475
|
| Personal Allowance (65-74)* |
9,030
|
9,490
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| Personal Allowance (75+)* |
9,180
|
9,640
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| Blind Person's Allowance |
1,800
|
1,890
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| Married Couple's Allowance (65-74)* |
6,535
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| Married Couple's Allowance (75+)* |
6,625
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6,965
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| Income Limit for age-related allowances |
21,800
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22,900
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National Insurance - Weekly Rates |
2009-2010 |
Lower earnings limit, primary Class 1
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£95 |
Upper earnings limit, primary Class 1
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£844 |
Employees Primary threshold
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£110 |
Up To Earnings Threshold
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Nil |
Employees’ primary Class 1 rate between primary threshold and
upper earnings limit
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11% |
Employees’ primary Class 1 rate above upper earnings limit
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1% |
Employees’ contracted-out rebate,
salary-related pension schemes
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1.6% |
Employers’ secondary Class 1 rate above secondary threshold
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12.8% |
Employers’ contracted-out rebate,
salary-related pension schemes
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3.7% |
Employers’ contracted-out rebate,
money-purchase schemes
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1.4% |
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 2009-2010 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
07/02/2010
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