How does EARNIE IQ handle a monthly employee changing
to a C rate mid-month?
Following HMRC rules, the employee is entitled to the whole
month at the exempt rate.
What are the changes to National Insurance Rates from April
2010?
- An Employee's Class 1 rate Contribution on earnings between the
Threshold and the UEL remains at 11%
- The Employer's Class 1 rate Contribution on earnings above the
Threshold and the UEL remains at 12.8%
What are the changes to National Insurance Earnings limits
from
April 2010?
- Lower Earnings Limit (weekly, monthly, annually) is raised from
£95.00, £412.00, £4,940.00 to £97.00, £421.00, £5,044.00
- Earnings Threshold (weekly, monthly, annually) remains
at £110.00, £476.00, £5,715.00
- Upper Accrual Point (weekly, monthly, annually) remains at
£770.00, £3,337.00, £40, 040.00
- Upper Earnings Limit (weekly, monthly, annually) remains
at £844.00, £3,656.00, £43,875.00
Will I be able to make my electronic payments to HMRC every
month, using EARNIE IQ?
No, this is not a payroll function. Making payments to HMRC is
an accountancy function.
Why is my director not paying any NI?
Remember, if you flag someone as a director from the start of
the tax year they will be subject to annual earnings
limits. This means they will not pay any NI until they earn
over the current Annual Earnings Threshold. Once they reach this
they will pay NI on all of their NIable earnings until they reach
the Annual Upper Earnings Limit.
From April 2003, directors will also have to pay an extra % on
earnings above the Upper Earnings Limit, whereas before
contributions would stop at this point.
What are the changes to Income Tax from April 2010?
Tax Code Changes
Suffix L codes are not changed, the default remains 647L.
Income Tax Changes
The basic and higher band tax rate remain the
same:
- Basic Rate 20% from £1 to £37,400
- Higher Rate 40% over £37,400
A new band has been introduced:
- Additional rate 50% over £150,000
The income tax personal allowance remains the same at
£6,475.
Income tax rates and bandwidths will be announced in the Budget
in the usual way.