Income Tax Allowances
The basic personal allowance for 2012/13 will be increased to £8105 and the tax code for emergency use will be 810L.
Income tax bands and income tax bandwidths for the 2012/13 tax year are as follows:
|Basic Rate||20%||£1 to £34,370|
|Higher Rate||40%||£34,371 to £150,000|
|Additional Rate||50%||£15,001 and above|
National Insurance Contributions (NIC’s) earning limits and thresholds
The changes to the National Insurance (NI) limits and thresholds for the 2012/13 tax year are as follows:
- The main rate of employee Class 1 NICs will remain unchanged at 12%
- The Class 1 employer rate of NICs will remain unchanged at 13.8%. This rate will also apply to Class 1A and Class 1B contributions.
- The additional rate of Class 1 will remain unchanged at 2%.
- The Lower Earnings Limit will be £107 per week.
- The Secondary Threshold (for employers) will be £144 per week
- The Primary Threshold (for employees) will be £146 per week.
- The Upper Accrual Point will remain unchanged at £770 per week.
- The Upper Earnings Limit will remain unchanged at £817 per week.
If you employ any women over 60 you need to continue to deduct Class 1 NIC up to the new State Pension age. For full details see www.businesslink.gov.uk/employeepensionage
A State Pension age calculator can be found at http://pensions-service.direct.gov.uk/en/state-pension-age-calculator/home.asp
March 19th, 2012