April 6th 2012 marks the start of new tax year, so how will this affect you? In this article we are outlining the main changes that may impact you under your employment. Where applicable, HMRC information is also provided.
Income Tax Changes 2012/2013: The changes to the new income tax rates and allowances are summarised at: http://www.hmrc.gov.uk/rates/it.htm
The first change to note is the increase of £630 in the personal allowance threshold to £8,105 up from £7,475. However the bad news is that the rate at which the 40% higher rate tax will apply drops by exactly the same amount from £35,000 to £34, 370. This means a basic rate tax payer is better off from this change but higher rate tax is payable from exactly the same level of income which is £42,475.
National Insurance Contributions: The changes to the National Insurance contributions can be viewed at: http://www.hmrc.gov.uk/rates/nic.htm
The main change being that the primary threshold (the point employees NIC becomes due) has increased to £146 per month, and the secondary threshold (the point at which employers NIC becomes due) has increased to £144 per month with the actual rates unchanged
Statutory Entitlements for 2012/2013: The key changes are summarised below: http://www.hmrc.gov.uk/employers/stat-pmnt-rates2012-13.pdf
- Statutory Maternity Pay (SMP) from £128.73 to £135.45 per week
- Ordinary & Additional Statutory Paternity Pay from £128.73 to £135.45 per week
- Statutory Adoption Pay (SAP) from £128.73 to£135.45 per week
- Statutory Sick Pay (SSP) from £81.60 to £85.85 per week
Student Loan Contributions: The 2012 - 2013 threshold above which student loan repayments become due has increased to £15,795, at a rate of 9%. If you have any queries, please contact the SLC directly on 0845 073 8891.
P60's: Your P60 will be issued by e-mail by the HMRC deadline of no later than the end of May 2012. If you wish to update your e-mail address, please contact Customer Care.
You can download our tax rate card here.