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.
