The Office Concept PAYE
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The standard personal allowance (for people aged under 65) is to increase from £7475 to £8105.
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The Basic Rate Limit has been reduced from £35,000 to £34,370 so that higher rate payers don't benefit from the personal allowance increase.
| Bandwidth | From | To | Rate (%) | Basic Rate Band |
|---|---|---|---|---|
0 |
0.01 |
8105.00 |
00.00 |
No |
34,370 |
8105.01 |
42475.00 |
20.00 |
Yes |
150,000 |
42,475.01 |
150,000.00 |
40.00 |
No |
Excess |
150,000 |
Excess |
50.00 |
No |
The effect of the extra £630 added on to the personal allowance is a £126 saving per year (20% of £630).
National Insurance
National Insurance contributions - rates and allowances
| £ per week | 2011-12 | 2012-13 |
|---|---|---|
| Lower earnings limit, primary Class 1 | £102 |
£107 |
| Upper earnings limit, primary Class 1 | £817 |
£817 |
| Upper accrual point | £770 |
£770 |
| Primary Threshold | £139 |
£146 |
| Secondary Threshold | £136 |
£144 |
| Employees' primary Class 1 rate between primary threshold and upper earnings limit |
12% |
12% |
| Employees' primary Class 1 rate above upper earnings limit | 2% |
2% |
The Office Concept is a member of The Federation of Small Businesses..