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

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