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Budget 2011/12

As part of our payroll service, ADP has generated - in association with Lexis Nexis - the 2011/2012 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

	2010/11	2011/12
Personal allowance (age under 65)	£6,475	£7,475
Personal allowance (age 65-74)	£9,490	£9,940
Personal allowance (age 75 & over)	£9,640	£10,090
Blind person's allowance	£1,890	£1,980
Married couple's allowance (age 75 & over)	£6,965	£7,295
Married couple’s allowance – minimum amount	£2,670	£2,800
Income limit for age-related allowance	£22,900	£24,000

Emergency Tax Code

The new emergency tax code from 6th April 2011 will be 747L, which can be operated either cumulatively or non-cumulatively as applicable.

Income Tax Rates 2010 to 2012

per year	Percentage 2010/11	2010/11	Percentage 2011/12	2011/12
Basic rate:	20%	£0-£37,400	20%	£0-£35,000
Higher rate:	40%	£37,401 to £150,000	40%	£35,001-£150,000
Additional rate:	50%	Over £150,000	50%	Over £150,000

£ per year (unless stated)		2010/11		2011/12
Small profits rate:	21%	£0-£300,000	20%	£0-£300,000
Marginal relief:		£300,001-£1,500,000		£300,001-£1,500,000
Main rate:	28%	£1,500,001 or more	26%	£1,500,001 or more

Pay Period	LEL	ST	PT	UAP	UEL
Weekly	£102	£136	£139	£770	£817
Monthly	£442	£589	£602	£3,337	£3,540
Annual	£5,304	£7,072	£7,225	£40,040	£42,475

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 PT	Employer's NIC Rebate LEL to ST	Employer's NIC percentage up to UAP	Employer's NIC percentage between UAP and UEL	Employer's NIC percentage over UEL
Not Contracted Out
A	12%	12%	2%	0%	0%	13.8%	13.8%	13.8%
B	5.85%	5.85%	2%	0%	0%	13.8%	13.8%	13.8%
C	0%	0%	0%	0%	0%	13.8%	13.8%	13.8%
J	2%	2%	2%	0%	0%	13.8%	13.8%	13.8%
Contracted Out Salary Related Scheme (COSR)
D	10.4%	12%	2%	1.6%	3.7%	10.1%	13.8%	13.8%
E	5.85%	5.85%	2%	0%	3.7%	10.1%	13.8%	13.8%
L	2%	2%	2%	1.6%	3.7%	10.1%	13.8%	13.8%
Contracted Out Money Purchase Scheme (COMP)
F	10.4%	12%	2%	1.6%	1.4%	12.4%	13.8%	13.8%
G	5.85%	5.85%	2%	0%	1.4%	12.4%	13.8%	13.8%
S	2%	2%	2%	1.6%	1.4%	12.4%	13.8%	13.8%

Paid by	Tax Year in which the benefit was provided	Percentage	Payment Due
Employer only NI on most taxable benefits	2010/11	12.8%	19th July or 22nd if paying electronically

Paid by	Tax Year in which the benefit was provided	Percentage	Payment Due
Employer only NI due on PAYE Settlement Agreements	2010/11	12.8%	19th October or 21st if paying electronically

	2010/11	2011/12
Class 2 rate	£2.40	£2.50
Class 3 rate	£12.05	£12.60
Class 4 lower profits limit	£5,715	£7,225
Class 4 upper profits limit	£43,875	£42,475
Class 4 rate between lower profits limit and upper profits limit	8%	9%
Class 4 rate above upper profits limit	1%	2%

PAYE Threshold

The new weekly PAYE tax threshold will be £144 per week, £623 per month.

Statutory Payments

	2010/11	2011/12
Minimum average weekly earnings	£97 per week	£102 per week
Standard weekly rate from 6th April	£79.15	£81.60

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 3rd April 2011, and are as follows:

SMP, OSPP, ASPP & SAP	2010/11	2011/12
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 £124.88 or 90% of average weekly earnings	The lesser of £128.73 or 90% of average weekly earnings
Ordinary Statutory Paternity Pay 2 weeks @	The lesser of £124.88 or 90% of average weekly earnings	The lesser of £128.73 or 90% of average weekly earnings
Additional Statutory Paternity Pay		The lesser of £128.73 or 90% of average weekly earnings
Statutory Adoption Pay 39 weeks @	The lesser of £124.88 or 90% of average weekly earnings	The lesser of £128.73 or 90% of average weekly earnings
Minimum qualifying average	£97 p.w. for babies due from 18th July 2010 onwards	£102 p.w. for babies due from 17th July 2011 onwards
Percentage of payment recoverable	92%	92%
Percentage of payment recoverable under Small Employer’s Relief	104.5%	103%
Qualifying NIC Annual Threshold	£45,000	£45,000

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

	2010/11	2011/12
Annual Allowance	£255,000	£50,000
Lifetime Allowance	£1,800,000	£1,800,000

Childcare Scheme

From 5th April 2011 employers can provide childcare vouchers of up to £55 per week tax and NI free. For new joiners to the scheme From 6th April 2011 basic rate taxpayers can receive up to £55 per week. Higher rate taxpayers receive up to £28 per week tax and NI free and additional rate taxpayers receive up to £22 per week tax & NI free.

Statutory Redundancy

From 1st February 2011 the maximum week’s pay for the calculation of statutory redundancy pay is £400 per week.

Company Cars

G/Km of CO2	Percentage of list price 2011/12	G/Km of CO2	Percentage of list price 2011/12
121-125	15*	185	27*
130	16*	190	28*
135	17*	195	29*
140	18*	200	30*
145	19*	205	31*
150	20*	210	32*
155	21*	215	33*
160	22*	220	34**
165	23*	225	35***
170	24*	230	35****
175	25*	235	35****
180	26*

#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

The multiplier figure used to determine the car fuel charge for company cars starting from 6th April 2011 is £18,800 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, starting from 6th April 2010, electrically powered car's taxable benefit is reduced to nil from 9%

From 6th April 2011, £80,000 price cap is abolished. The discounts for alternative fuelled cars also abolished.

From 6th April 2011 the van fuel benifit is £550. For a period of five years, starting from 6th April 2010, the flat rate benefit charge (currently £3,000) is reduced to nil for electrically powered vans.

National Minimum Wage

Age		From 1st October 2010
Adult rate over 21 years		£5.93†
18 to 20 years old		£4.92
16 to 17 years old		£3.64

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

Payroll and the 2010 Budget