The 2020 Budget is still a few weeks away, but the NIC rates and thresholds have been announced, together with details for other payroll deductions.
Employees will benefit from a primary class 1 threshold of £9,500, as promised in the Conservative party manifesto. Employers will start paying NIC sooner at £8,788 (so a small increase from £8,632).
There are no changes to NI table letters or percentages, as there was a commitment during the general election not to raise the rates of national insurance for the life of this parliament.
Income tax thresholds
The tax bands have yet to be announced. However, it is anticipated that the personal allowance will remain at £12,500.
From 6 April 2020 the introduction of Class 1A (employer only) NI on termination payments over £30,000 will require the employers to complete a manual calculation and enter that in the Full Payment Submission (FPS).
The Employment Allowance will be withdrawn for employers (and connected employers) who have an employer national insurance liability of £100,000 or more for 2019/20.
Statutory payments for 2020/2021 have been confirmed as:
|SMP, SAP, SPP, ShPP, SPBP*||£151.20 p.w. from 5 April 2020|
|SSP||£95.85 p.w. from 6 April 2020|
*Statutory parental bereavement pay will be introduced in Great Britain only (not Northern Ireland).
If you have any queries, or need assistance with any aspect of your payroll, please give our dedicated Payroll team a call on 01788 539000.