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PAYE and NIC |
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NIC standard rate threshold See TM ¶5004 Legislation requires that the threshold at which Class 1A (employer’s) national insurance contributions become payable be increased each year by the annual percentage increase in the Retail Prices Index (RPI). The weekly threshold for 2011/12 will increase by £21 more than this, but the exact threshold will not be announced until after the publication of the RPI for September 2010. NIC standard rate See TM ¶5004 As previously announced, from 6 April 2011: » all Class 1 and Class 1A contribution rates will rise by 1%; and » the threshold at which Class 1 (employee’s) national insurance contributions become payable will increase by £570 for the year as a whole. The upper earnings limit will be reduced, such that most higher-rate and additional-rate taxpayers will pay a similar amount of NIC as in 2010/11. The rates for 2011/12 as presently known are summarised below:
NIC reduction for new regional businesses See TM ¶5048 Businesses which start up in certain regions of the UK: will be exempt from up to £50,000 of employer’s NIC in their first year of operation. The maximum exemption will be £5,000 for each of the first 10 employees hired in the first year of business. The scheme is intended to start no later than September 2010 and will run for 3 years. Any new business which starts up on or after 22 June 2010 will be eligible, subject to meeting various criteria which will be announced in the near future. NIC Class 4 rate See TM ¶5093 As previously announced, from 6 April 2011: » all Class 4 contribution rates will rise by 1%; and » the lower profits limit (threshold at which Class 4 national insurance contributions become payable) will increase by £570. The upper profits limit will not be announced until after the publication of the RPI for September 2010. The rates for 2011/12 as presently known are summarised below:
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