Rates and payments

Topic Index
Overview
Income tax bands and personal allowance
National Insurance contributions
Inflation measures
Statutory Maternity/Adoption/Paternity Pay and Statutory Sick Pay
National Minimum Wage rates
Tribunal compensation limits
Company car taxation
Advisory fuel rates for company cars
Social security benefits
Jury service allowances
Bank holidays and religious festivals

Overview

 

  • This section contains:
    • income tax bands and the personal allowance
    • National Insurance contributions rates
    • inflation measures, featuring the Retail Prices Index (plus the RPIJ) and the Consumer Prices Index (plus the CPIH) 
    • the rates for Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Additional Statutory Paternity Pay (ASPP), Statutory Adoption Pay (SAP) and Statutory Sick Pay (SSP)
    • the rates for the National Minimum Wage (NMW)
    • the maximum compensation limits for various classes of tribunal claims
    • the latest advisory fuel rates for company cars
    • jury service financial loss allowances for England, Wales and Scotland
    • rates of common social security benefits
    • bank holidays and religious festivals


  2013-14 2014-152015-16 
Basic rate  £0-32,010 £0-31,865 £0-31,785
Higher rate £32,010-150,000 £31,866-150,000 £31,786-150,000
Additional rate Over £150,000 Over £150,000 Over £150,000
Personal allowance £9,440 £10,000 £10,500


   2013 - 2014  2014 - 2015
Lower earnings limit, primary Class 1
 £109 per week
 £111 per week
Upper earnings limit, primary Class 1
 £797 per week
 £805 per week
 Primary threshold
 £149 per week
 £153 per week
 Secondary threshold
 £148 per week
 £153 per week
Employees' primary Class 1 rate
12% of earnings between £149-£797 per week; 2% above £797 per week 12% of earnings between £153-£805 per week; 2% above £805 per week
Employers' secondary Class 1 rate
13.8% on earnings above £148 per week
13.8% on earnings above £153 per week
Employees' contracted-out rebate
 1.4%  1.4%
Employers' contracted-out rebate: salary-related schemes
 3.4%  3.4%
Employment allowance (per employer) N/A £2,000 per year

 


 

Retail Prices Index (RPI) - all items

 

 

 2013 Index

(1987=100) 

 Annual increase (%)

2014 Index

(1987=100) 

Annual increase (%)
January 245.8 3.3 252.6  2.8 
February 247.6 
 3.2 
254.22.7
March 248.7 
  3.3 
254.8  2.5 
April 249.5  2.9 255.7 2.5
May 250.0  3.1 255.92.4
June 249.7   3.3 256.3 2.6 
July 249.7   3.1  256.02.5 
August 251.0  3.3   
September 251.9  3.2   
October 251.9   2.6    
November 252.1   2.6   
December 253.4   2.7   

 

RPIJ

 

The Office for National Statistics (ONS) no longer considers RPI inflation as a national statistic due to its tendency to overstate inflation (although it continues to report the latest movements in RPI). The ONS is currently considering its replacement with a new measure – RPIJ – which the ONS says is an improved variant of the RPI calculated using formulae which meet international standards. It is possible that RPIJ could become a designated national statistic by the start of 2014. See also: Will ONS’ new inflation measures find favour with pay setters?– comment from XpertHR Pay Intelligence.

 

 

2013 Index

(1987 = 100) 

Annual increase (%) 

2014 Index

(1987 = 100) 

Annual increase (%) 
January  230.6 2.7235.4 2.1 
February  231.7 2.6236.3 2.0 
March 232.6 2.7236.71.8
April 233.2 2.3237.4 1.8
May 233.5 2.5237.5 1.7
June 233.2 2.7237.8 2.0
July 233.2 2.6237.5 1.8
August 234.2 2.6  
September 235.0 2.5  
October 234.9 1.9  
November 235.1 2.0  
December 236.2 2.0  

 

Consumer Prices Index (CPI)


 

2013 Index

(2005=100) 

Annual increase (%)

2014 Index

(2005=100) 

Annual increase (%)
January
 124.4  2.7 
 126.71.9
February  125.2 
 2.8  127.41.7 
March  125.6 
 2.8   127.7 1.6
April  125.9 
 2.4  128.11.8
May 126.1   2.7 128.0 1.5 
June 125.9   2.9 128.31.9
July 125.8  2.8 127.8 1.6 
August 126.4   2.7   
September 126.8  2.7   
October 126.9   2.2   
November 127.0   2.1   
December 127.5   2.0   

 

CPIH

 

CPIH is a new and experimental measure of Consumer Price Index (CPI) inflation which includes owner occupiers’ housing costs, i.e. the costs of housing services associated with owning, maintaining and living in one’s own home. It is possible that CPIH could become a designated national statistic by the start of 2014. 

 

See also:

 

 
 

2013 Index

(2005=100) 

Annual increase (%) 

2014 Index

(2005=100) 

Annual increase (%) 
January  122.5 2.5124.7 1.8 
February 123.2 2.6125.2 1.6 
March 123.6 2.6125.5 1.5 
April 123.8 2.2125.81.6 
May 124.0 2.5125.8 1.4
June 123.8 2.7126.01.8 
July 123.8 2.5 125.7 1.5
August 124.3 2.5  
September 124.7 2.5  
October 124.8 2.0  
November 124.8 1.9  
December 125.3 1.9  

 


 

   2013-2014  2014-2015
Statutory Sick Pay (SSP)
£86.70 per week (payable to those earning above the lower earnings limit of £109) £87.55 per week (payable to those earning above the lower earnings limit of £111)
Statutory Maternity Pay (SMP)
6 weeks' pay at 90% of average earnings; 33 weeks at £136.78 (or 90% of normal weekly earnings if this is lower) 6 weeks' pay at 90% of average earnings; 33 weeks at £138.18 (or 90% of normal weekly earnings if this is lower)
Statutory Paternity Pay (SPP)
£136.78 per week (or 90% of normal weekly earnings if this is lower); paid for 2 weeks £138.18 per week (or 90% of normal weekly earnings if this is lower); paid for 2 weeks
Statutory Adoption Pay (SAP)/Additional Statutoty Paternity Pay (ASPP)
£136.78 per week (or 90% of normal weekly earnings if this is lower); paid for a maximum of 26 weeks £138.18 per week (or 90% of normal weekly earnings if this is lower); paid for a maximum of 26 weeks
Statutory Maternity Allowance (SMA)
£136.78 per week for 39 weeks (or 90% of normal weekly earnings if this is lower); paid to those who have not worked for their employer long enough to qualify for SMP £138.18 per week for 39 weeks (or 90% of normal weekly earnings if this is lower); paid to those who have not worked for their employer long enough to qualify for SMP

 
  From 1 October 2013 
From October 2014 
 Workers aged 21 and over
 £6.31 per hour
 £6.50 per hour
 Workers aged 18-20
 £5.03 per hour
 £5.13 per hour
 Workers aged 16-17
 £3.72 per hour
 £3.79 per hour
 Apprentices*  £2.68 per hour
 £2.73 per hour
 Accommodation offset
£4.91 per day
£5.08 per day

 

* The apprentices rate applies to those apprentices who are under 19 or those who are over 19 but in the first year of their apprenticeship

See also:

 

 

 


 

 Employment Right
Maximum award - from 1 February 2013
Maximum award - from 6 April 2014
Limit on a 'week's pay'
 £450 £464
Unfair dismissal
  
Basic award
 £13,500£13,920
Compensatory award
 £74,200£76,574
Additional award
 £11,700-£23,400 (i.e. 26-52 weeks' pay)
£12,064-£24,128 (i.e. 26-52 weeks' pay)
Redundancy pay
 £13,500£13,920
Discrimination  No limit
No limit
Dismissal for union/employee representative or pension trustee reasons
  
Basic award
 £13,500 (minimum: £5,500)
£13,920 (minimum: £5,676)
Compensatory award
 £74,200£76,574
Dismissal for health and safety reasons or for making a protected disclosure
  
Basic award
 £13,500£13,920
Compensatory award
 No limit
No limit
Guarantee pay
 £121.00 (5 days in any period of 3 months @ £24.20 per day)
£125.00 (5 days in any period of 3 months @ £25.00 per day)
Breach of contract
 Tribunal: £25,000; High/County Court: no limit Tribunal: £25,000; High/County Court: no limit

 

 



A company car's value for tax purposes is assessed as a percentage of its list price and this depends on the level of carbon dioxide (CO2) emissions. The appropriate percentage of the car list price taxed (for petrol cars) is as follows: 

 

CO2 emissions

(g/km) 

2013-14  2014-152015-16 2016-172017-18 2018-19 
0-50 5% 5% 5% 7% 9% 13%
51-75 5% 5% 9% 11% 13% 16%
76-94 10% 11% 13% 15% 17% 19%
95-99 11% 12% 14% 16% 18% 20%
100-104 12% 13% 15% 17% 19% 21%
105-109  13% 14% 16% 18% 20% 22%
110-114 14% 15% 17% 19% 21% 23%
115-119 15% 16% 18% 20% 22% 24%
120-124 16% 17% 19% 21% 23% 25%
125-129 17% 18% 20% 22% 24% 26%
130-134 18% 19% 21% 23% 25% 27%
135-139 19% 20% 22% 24% 26% 28%
140-144 20% 21% 23% 25% 27% 29%
145-149 21% 22% 24% 26% 28% 30%
150-154 22% 23% 25% 27% 29% 31%
155-159 23% 24% 26% 28% 30% 32%
160-164 24% 25% 27% 29% 31% 33%
165-169 25% 26% 28% 30% 32% 34%
170-174 26% 27% 29% 31% 33% 35%
175-179 27% 28% 30% 32% 34% 36%
180-184 28% 29% 31% 33% 35% 37%
185-189 29% 30% 32% 34% 36% 37%
190-194 30% 31% 33% 35% 37% 37%
195-199 31% 32% 34% 36% 37% 37%
 200 and above 32% 33% 35% 37% 37% 37%

 

Diesel cars 

 

For 2015-16 and earlier tax years, diesel cars attract a supplement of 3% subject to a maximum charge (35% for 2014-15 and earlier tax years and 35% from 2015-16). The diesel supplement is abolished for 2016-17. From that date the appropriate percentage for a diesel car is the same as for a petrol car with the same CO2 emissions.

 

Zero-emission cars

 

From 6 April 2010 for five years (2010-11 to 2014-15 inclusive) no charge is payable in respect of cars that are not capable of producing CO2 engine emissions in any circumstance. This includes electric-only cars.

 


 

From 1 September 2014

 

Engine size
Petrol
LPG
 Up to 1400 cc
 14p 9p
 1401 cc - 2000 cc
 16p 11p
 Over 2000 cc 24p 16p

 

 Engine size
 Diesel
 1600 cc or less
 11p
 1601 cc - 2000 cc
 13p
 Over 2000 cc
 17p

 

For earlier rates, see HMRC website

 

 


 

 

From April 2013 
From April 2014 
Attendance Allowance
  
Higher rate
£79.15 
£81.30 
Lower rate
£53.00 
£54.45
Carer's Allowance
£59.75£61.35
Disability Living Allowance  
Care component  
Highest
£79.15 
£81.30
Middle
£53.00 
£54.45
Lowest
£21.00 
£21.55
Mobility component
  
Higher
£55.25 
£56.75
Lower
£21.00 
£21.55
Employment and Support Allowance
  
Personal allowances
  
Single under 25 and lone parent under 18
£56.80£57.35
Single 25 or over and lone parent 18 or over
£71.70 
£72.40
Incapacity Benefit
  
Long-term Incapacity Benefit
£101.35 
£104.10
Short-term Incapacity Benefit (under state pension age)
  
Lower rate
£76.45£78.50
Higher rate
£90.50 
£92.95
Jobseeker's Allowance
  
Contribution/income-based JSA: personal rates/allowances 
  
Under 25
£56.80 
£57.35
25 or over
£71.70 
£72.40
Maternity Allowance
  
Standard rate
£136.78 
£138.18 
Earnings threshold
£30.00
£30.00
State pension
  
Standard rate for man or woman with a full contribution record
£110.15 
£113.10
Wife qualifying on her husband's contributions
£66.00 
£67.80

 


 

Employees have the right not to be dismissed or subjected to any detriment because they have been summoned for jury service. This right applies irrespective of their length of service. Employers are not obliged (in the absence of any contractual right) to pay employees called for jury service although they may of course choose to do so. The employee may claim travel and food expenses from the court. In addition, there are set compensation rates for loss of earnings as follows.

 

England and Wales

 

Period of jury serviceUp to and including 4 hours on any day More than 4 hours on any day 
First 10 days of jury service £32.47 £64.95
Between the 11th day and the 200th day £64.95 £129.91
On the 201st and all subsequent days £114.03 £228.06

 

Scotland

 

Jurors in Scotland can claim the financial loss allowances regardless of whether they actually serve on a jury. The allowances can be claimed in respect of loss of earnings or social security welfare benefits and additional expenses, which would not otherwise have been incurred, in employing a child minder, other child carer, or carer for a dependent adult. The following rates apply. For the first five days of jury service, there are different limits depending on whether the period on any day lasted for more than four hours. However, after the first five days the number of hours on any day is irrelevant.

 

Period of jury serviceUp to and including 4 hours on any day More than 4 hours on any day 
First 5 days £32.47 £64.95
Between the 6th and 100th £129.91 £129.91
On the 101st and all subsequent days £230 £230

 

 


 

 

See also the Holidays section of Employment Law Basics.

 

...
 
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