BrightPay Blog


Feb 2014

6

2014/15 Budget Summary for UK Employers

There are a number of 2014-15 Budget measures which will affect the payroll for employers.

As a general rule, effective from 05th April 2014, unless an amended code notification has been received on a form P9 (T), employers should amend 2013-14 codes as follows:

  • Tax codes ‘L’ suffix codes – increase by 56; code 944L becomes 1000L 
  • The PAYE threshold with effect from 6 April 2014 is raised to £192 per week (£833 per month) 
  • The code for emergency use with effect from 6 April 2014 is 1000L

 

 National Insurance contribution thresholds 2014-15

Weekly Lower Earnings Limit (LEL) 111
Weekly Primary Threshold (PT) 153
Weekly Secondary Threshold (ST) 153
Upper Earnings/Profits Limit (UEL/UPL) 805 (41,865 per year)
Small Earnings Exception (SEE) 5885
Lower Profits Limit (LPL) 7,956 (per year)
Employment Allowance 2,000 (per year, per employer)

 

Statutory Payment Changes 2014/15

Statutory Adoption Pay: Earnings threshold £111.00, Statutory Payment Changes 2014/15
Statutory Adoption Pay: Earnings threshold £111.00, Standard Rate £138.18
Statutory Maternity Pay: Earnings threshold £111.00, Standard rate £138.18
Statutory Paternity Pay: Earnings threshold £111.00, Ordinary Statutory Paternity Pay (Standard Rate) £138.18, Additional Statutory Paternity Pay (Standard Rate) £138.18
Statutory Sick Pay: Earnings threshold £111.00, Standard rate £87.55

  • The SSP rate will take effect from 6 April 2014.
  • The SMP, SAP, OSPP and ASPP rates will take effect for payment weeks beginning on or after the 1st Sunday in April which is also 6 April 2014.
  • There are no changes to the rules and rates for the recovery of SMP, SAP, OSPP and ASPP for 2014-15.
  • The Percentage Threshold Scheme for recovery of SSP will be abolished from 6th April 2014.

 

National Insurance: £2,000 employment allowance

The Government will introduce an allowance of £2,000 per year for all businesses and charities to be offset against their employer Class 1 secondary NICs liability from April 2014.

 

Exemption threshold for employer provided beneficial loans

Legislation will be introduced in Finance Bill 2014 to increase the exempt threshold for employment-related loans from £5,000 to £10,000 with effect from 6 April 2014.

 

 

Posted byKaren McDarbyinNICPAYEPayroll Software