Budget 2013: Key Points For Payroll
In March Simon Parsons covered the 2013 Budget announcment in detail. Here we pull out the key points for payroll, and the Low Pay Commission (LPC) recommendations for National Minimum Wage increase which have been accepted by Government.
Our handy Budget Card also captures all of the rates and numbers you need for this tax year – National Insurance Contributions, Income Tax, Statutory Benefits and more…
- Income Tax Personal Allowance (for the 2014-2015 tax year)
- The personal allowance increase motors on with those born after 5 April 1948 seeing it increase to £10,000 in April 2014, a year earlier than planned. No changes were made to the rates applicable for the current tax year 2013/2014.
- Employer National Insurance
- A new employment allowance will cut the first £2,000 from employers’ National Insurance bills.
- New Childcare Scheme
- A new childcare scheme is to be introduced to support families where both parents work in Autumn 2015. For childcare costs of up to £6,000 per annum, the equivalent of 20% tax relief is available with a worth value of up to £1,200.
- Beneficial Loan Threshold Increase
- From April 2014 employers will be able to lend their employees up to £10,000 a year without a tax charge being incurred – an increase of £5,000 on the current limit.
- The annual allowance is to be reduced to £40,000 per annum with the standard lifetime allowance reduced to £1.25 million for the 2014/2015 tax year onwards.
The flat-rate pension worth £144 a week will also be brought forward to 2016.
- National Minimum Wage (NMW) Increase
- From October 2013 the NMW will increase as follows:
- * The adult rate will increase from £6.19 by 12p to £6.31 an hour
- * The rate for 18-20 year olds will increase from £4.98 by 5p to £5.03 an hour
- * The rate for 16-17 year olds will increase from £3.68 by 4p to £3.72 an hour
- * The apprentice rate will increase from £2.65 by 3p to £2.68 an hour
- * The accomodation offset will increase from £4.82 to £4.91.