Budget 2010/11

As part of our payroll service, ADP has generated - in association with Lexis Nexis - the 2010/2011 Budget guide. The guide provides useful information for payroll and HR professionals and highlights in grey, the figures which have changed since last year.

You can even download a shortcut to your desktop for quick and easy access to the budget
information 24/7.

Personal Allowances

	2009/10	2010/11
Personal allowance (age under 65)	£6,475	£6,475
Personal allowance (age 65-74)	£9,490	£9,490
Personal allowance (age 75 & over)	£9,640	£9,640
Blind person's allowance	£1,890	£1,890
Married couple's allowance (age 75 & over)	£6,965	£6,965
Married couple’s allowance – minimum amount	£2,670	£2,670
Income limit for age-related allowance	£22,900	£22,900

Emergency Tax Code

The new emergency tax code from 6th April 2010 will be 647L, which can be operated either cumulatively or non-cumulatively as applicable.

 

Income Tax Rates 2009 to 2011

per year	Percentage 2009/10	2009/10	Percentage 2010/11	2010/11
Basic rate:	20%	£0-£37,400	20%	£0-£37,400
Higher rate:	40%	Over £37,400	40%	£37,401-£150,000
Additional rate:	N/A	N/A	50%	Over £150,000

Corporation Tax on Profits

£ per year (unless stated)	2009/10	2010/11
Small companies’ rate: 21%	£0-£300,000	£0-£300,000
Marginal relief:	£300,001-£1,500,000	£300,001-£1,500,000
Main rate: 28%	£1,500,001 or more	£1,500,001 or more

Class 1 NIC Rates and Limits 2010/11

Pay Period	LEL	ET	UAP	UEL
Weekly	£97	£110	£770	£844
Monthly	£421	£476	£3,337	£3,656
Annual	£5,044	£5,715	£40,040	£43,875

Class 1

NIC Percentage Rates

	Employee's NIC percentage up to UAP	Employee's NIC percentage between UAP and UEL	Employee's NIC percentage over UEL	Employee's NIC Rebate LEL to ET	Employee's NIC Rebate LEL to ET	Employee's NIC percentage up toUAP	Employee's NIC percentage between UAP and UEL	Employee's NIC percentage over UEL
Not Contracted Out
A	11%	11%	1%	0%	0%	12.80%	12.80%	12.80%
B	4.85%	4.85%	1%	0%	0%	12.80%	12.80%	12.80%
C	0%	0%	0%	0%	0%	12.80%	12.80%	12.80%
J	1%	1%	1%	0%	0%	12.80%	12.80%	12.80%
Contracted Out Salary Related Scheme (COSR)
D	9.40%	11%	1%	1.60%	3.70%	9.10%	12.80%	12.80%
E	4.85%	4.85%	1%	0%	3.70%	9.10%	12.80%	12.80%
L	1%	1%	1%	1.60%	3.70%	9.10%	12.80%	12.80%
Contracted Out Money Purchase Scheme (COMP)
F	9.40%	11%	1%	1.60%	1.40%	11.40%	12.80%	12.80%
G	4.85%	4.85%	1%	0%	1.40%	11.40%	12.80%	12.80%
S	1%	1%	1%	1.60%	1.40%	11.40%	12.80%	12.80%

Class 1A

Paid by	Tax Year in which the benefit was provided	Percentage	Payment Due
Employer only NI on most taxable benefits	2009/10	12.80%	19th July or 22nd if paying electronically

Class 1B

Paid by	Tax Year in which the benefit was provided	Percentage	Payment Due
Employer only NI due on PAYE Settlement Agreements	2009/10	12.80%	19th October or 22nd if paying electronically

Other Classes of NI

	2009/10	2010/11
Class 2 rate	£2.40	£2.40
Class 3 rate	£12.05	£12.05
Class 4 lower profits limit	£5,715	£5,715
Class 4 upper profits limit	£43,875	£43,875
Class 4 rate between lower profits limit and upper profits limit	8%	8%
Class 4 rate above upper profits limit	1%	1%

PAYE Threshold

The new weekly PAYE tax threshold will be £125 per week, £540 per month.

 

Statutory Payments

Statutory Sick Pay

	2009/10	2010/11
Minimum average weekly earnings	£95 per week	£97 per week
Standard weekly rate from 6th April 2010	£79.15	£79.15

Statutory Maternity, Paternity & Adoption Pay

The increase to the statutory payment rates, percentages and thresholds for SMP, SPP and SAP, are effective for payment of entitlement weeks starting on or after 4th April 2010, and are as follows:

SMP, SPP & SAP	2009/10	2010/11
Higher rate of SMP for first 6 weeks	90% of average weekly earnings	90% of average weekly earnings
Standard rate of SMP for the next 33 weeks	The lesser of £123.06 or 90% of average weekly earnings	The lesser of £124.88 or 90% of average weekly earnings
Statutory Paternity Pay 2 weeks @	The lesser of £123.06 or 90% of average weekly earnings	The lesser of £124.88 or 90% of average weekly earnings
Statutory Adoption Pay 39 weeks @	The lesser of £123.06 or 90% of average weekly earnings	The lesser of £124.88 or 90% of average weekly earnings
Minimum qualifying average	£95 p.w. for babies due from 19th July 2009 onwards	£97 p.w. for babies due from 18th July 2010 onwards
Percentage of payment recoverable	92%	92%
Percentage of payment recoverable under Small Employer’s Relief	104.5%	104.5%
Qualifying NIC Annual Threshold	£45,000	£45,000

Pension Scheme Allowances

(Replaces the Pensions Earnings Cap from 6th April 2006)

	2009/10	2010/11
Annual Allowance	£245,000	£255,000
Lifetime Allowance	£1,750,000	£1,800,000

Childcare Scheme

From 6th April 2006 employers can provide childcare vouchers of up to £55 per week tax and NI free.

 

Statutory Redundancy

From 1st October 2009 the maximum week’s pay for the calculation of statutory redundancy pay is £380 per week.

Company Cars

Company Car Scale Charge Calculator

G/Km of CO2	Percentage of list price 2010/11	G/Km of CO2	Percentage of list price 2010/11
125	15*	185	26*
130	15*	190	27*
135	16*	195	28*
140	17*	200	29*
145	18*	205	30*
150	19*	210	31*
155	20*	215	32*
160	21*	220	33**
165	22*	225	34***
170	23*	230	35****
175	24*	235	35****
180	25*

#Vehicles with 120g/km or less will be taxed at a rate of 10% of the list price from 2010/11
* Add 3% for diesel fuel
** Add 2% for diesel fuel
*** Add 1% for diesel fuel
**** Maximum charge – no diesel fuel supplement.
If the CO2 emissions figure for the car does not end in “0” or “5”, round down to the nearest 5g/Km

Car Fuel Benefit

The multiplier figure used to determine the car fuel charge for company cars from 6th April 2010 is £18,000 which is multiplied by the appropriate percentage that has been used to calculate the car benefit according to CO2 emissions.

For a period of five years, electrically powered car’s taxable benefit will be reduced to nil from 9%.

Company Vans

From 6th April 2010 van fuel benefit increased to £550. For a period of five years, starting 6th April 2010, the flat rate benefit charge (currently £3,000) will be reduced to nil for electrically powered vans.

National Minimum Wage

Age	From 1st October 2009	From 1st October 2010
Adult rate over 22 years	£5.80	£5.93†
18 to 21 years old	£4.83	£4.92
16 to 17 years old	£3.57	£3.64

†From 1st October 2010 the adult rate will be reduced to 21 years.