Tax rates & thresholds

Income tax 2011/12

Basic tax rate: 20% on annual earnings above the PAYE tax threshold and up to £35,000
Higher tax rate: 40% on annual earnings from £35,001 to £150,000
Additional tax rate: 50% on annual earnings above £150,000

PAYE 2011/12

PAYE tax threshold: £144 per week = £623 per month = £7,475 per year
Emergency tax code 747L

Class 1 NICs 2011/12

Lower earnings limit (LEL): £102 per week = £442 per month = £5,304 per year
Secondary Threshold (ST): £136 per week = £589 per month = £7,072 per year
Primary Threshold (PT): £139 per week = £602 per month = £7,225 per year
Upper accrual point (UAP): £770 per week = £3,337 per month = £40,040 per year
Upper earnings limit (UEL): £817 per week = £3,540 per month = £42,475 per year

NICs 2011/12

Employees Class 1: 0% up to PT; 12% above PT up to UEL; 2% above UEL (nb: depends on NIC code – these rates cover most employees)
Employers Class 1A: 0% up to ST; 13.8% above ST (nb: depends on NIC code – these rates cover most employees)
Employers Class 1A (on benefits, and expenses not covered by dispensation): 13.8%

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