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Statutory payment rates and thresholds for 2011/12
Friday, December 10th, 2010
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The new tax and NICs rates and thresholds for 2011/12 were announced by the Treasury on 2 December, followed by the new statutory payment rates from the Department for Work and Pensions. In general they reflect the 4.6% increase in retail prices in the year to September 2010. The legislation for the increases in the tax allowances is already in place, although the higher increase in the personal allowance (which would otherwise be £6,785) and the reduction in the basic rate limit (which would otherwise be £39,200) require further legislation.
Tax allowances
The following Table shows the tax allowances since the 2008/09 tax year.
* The tax relief on the married couple’s allowance is restricted to 10%.
Tax thresholds
There are no changes to tax rates. The tax thresholds since the 2008/09 tax year are as follows.
NICs thresholds
The Class 1 NICs thresholds for 2010/11 and 2011/12 are as follows.
* These values are specifically defined in statute. All other values are calculated according to statutory calculation and rounding rules. As the legislation has not yet been published, some figures are subject to confirmation.
** The UAP is a fixed value and does not change each year.
NICs rates
The National Insurance Contribution rates for 2011/12, covering all NI Table letters, are as follows.
Statutory Sick Pay
The weekly rate of SSP increases from £79.15 to £81.60 from 6 April 2011. The daily rates are shown in the following table. The earnings threshold is £102 per week.
Statutory Maternity/Adoption/Ordinary Paternity/Additional Paternity Pay
The standard weekly rate of SMP, SAP. OSPP and ASPP is £128.73 from Sunday, 3 April 2011, up from £124.88. The daily rate is £18.39 exactly. The earnings threshold is £102 per week.
Further information:
Annual uprating of certain tax and tax credits rates and thresholds
Income Tax (Indexation) Order 2010
Social Security Benefit Up-rating
Trevor Lovell says:
December 14th, 2010
18:24
Suggest that the derived Secondary Thresholds for Fortnightly and Lunar are incorrect. Should round UP to whole pound making them 273 and 545 respectively.
Ian Congreave says:
December 15th, 2010
08:01
Trevor, thank you, you are correct to say that the ST and PT calculations for the two-week and four-week rates are the annual rate divided by 52, multiplied by 2 or 4, and rounded up. The difficulty I had in putting the table together was that the annual rate has not yet been stated anywhere (to my knowledge) and the £7,075 annual rate is my assumption based on the £136 weekly rate (which is the rate that has actually been announced and which is always specified in the legislation and does not have a rounding rule).
The annual rate could be £7,065, and that would give fortnightly and four-weekly rates of £272 and £544.
So, as I often do, I have argued myself into a situation where I am wrong either way! Either the £7,075 is wrong, or the £272 and £544 are wrong. I will correct one or the other as soon as the Regulations appear.
Ian Congreave says:
December 16th, 2010
17:09
The full figures have been published this week and the correct figures for the secondary threshold are: weekly £136, Fortnightly £272, Four-weekly £544, monthly £589, yearly £7,072.
David says:
January 11th, 2011
12:53
Can I ask for clarification on the start date for new rates please? Is it from April 3rd or April 11th?
You say “The standard weekly rate of SMP, SAP. OSPP and ASPP is £128.73 from Sunday, 3 April 2011, up from £124.88″
when the “Benefit uprating” link above says :-
The Minister for Pensions (Steve Webb): I am pleased to announce the proposed rates of benefit for 2011, which are set out in the table below. The annual uprating of benefits will take place for State Pensions and most other benefits in the first full week of the tax year. In 2011, this will be the week beginning 11 April. A corresponding provision will be made in Northern Ireland.
Vince Ashall says:
March 22nd, 2011
10:44
I think the operative phrase in the “Benefit Uprating” link is ‘most other benefits’. I wouldn’t describe statutory payments as ‘benefits’ on the basis that they are paid by the employer. Historically, statutory payments, with the exception of SSP, have been increased from the first Sunday in April.
Also the uprating link states ‘…most other benefits…’ yet there is no indication in the table as to which benefits won’t be uprated from 11th April.