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
2011?
- Lower Earnings Limit (weekly, monthly, annually) is raised from
£97.00, £421.00, £5,044.00 to £102,00, £442.00, £5,304.00
- Secondary Threshold (weekly, monthly, annually)
is set to £136.00, £589.00, £7,072.00.
- Primary Threshold (weekly, monthly, annually) is set
to £139.00, £602.00, £7,225.00.
- Upper Accrual Point (weekly, monthly, annually) remains
at £770.00, £3,337.00, £40,040.00.
- Upper Earnings Limit (weekly, monthly, annually)
is reduced to £817.00, £3,540.00, £42,475.00.
Rates
- An employee's Class 1 rate Contribution on earnings between the
Primary Threshold and the UEL is raised to 12%
- The employer's Class 1 rate Contribution on earnings above the
Secondary Threshold and above the UEL is raised to 13.8%
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 2011?
Tax codes
- Suffix L codes are uplifted by 100 points, the
default becomes 747L.
Income tax
The basic and higher band tax rates remain the same:
- Basic Rate 20% from £1 to £35,000
- Higher Rate 40% from £35,001 to £150,000
- Additional Rate 50% over £150,000.
- The income tax personal allowance becomes £7,475.