Tuesday, 16 March 2010

Changes to PAYE, National Insurance & Statutory Payments for 2010-2011

The emergency tax code applied to all new starters who are unable to provide a P45 does not change from 1 April. This also means that there will be no increase in any tax codes unless you have received personal tax code notices from HM Revenue & Customs. Employees on this code can still earn £125 per week or £540 per month without paying tax. The threshold for paying NI also stays at £110 per week or £476 per month. However there is a new tax band of 50% for any taxable earnings over £150,000 per year.

From 1 April the rate of Statutory Sick Pay is unchanged at £79.15 per week. However the rates for Statutory Maternity Pay, Paternity Pay and Adoption Pay increase to £124.88 per week. Please ensure that these rates are correctly applied where required and that any entitlement to reclaim these payments is correctly made

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